Microsoft offers voluntary buyouts to around 60,000 employees amid AI spending push

Microsoft is offering voluntary exit packages to approximately 60,000 employees as the technology giant seeks to manage costs while continuing to invest heavily in artificial intelligence (AI).

Microsoft is offering voluntary exit packages to approximately 60,000 employees as the technology giant seeks to manage costs while continuing to invest heavily in artificial intelligence (AI).

The offer, announced on Monday could cover roughly 27 per cent of the company’s global workforce, according to the report. Eligible employees include staff at vice-president level and below working in selected teams in the United States, Canada, India and the United Kingdom.

However, the programme does not cover every employee. Some teams including certain workers involved in data centres, sales and marketing have been excluded.

Amy Coleman, Microsoft’s executive vice-president and chief people officer said the voluntary exit offer was part of the company’s evolving approach to organisational change. In an internal memo she said the initiative was intended to provide greater flexibility and allow employees to make decisions about their future careers.

This is Microsoft’s second voluntary departure programme this year. In April the company reportedly offered early retirement to around seven per cent of its US workforce. CNBC reported that approximately 30 per cent of eligible employees accepted that offer.

Microsoft had 223,000 employees worldwide at the end of June, compared with 228,000 at the end of 2025, according to regulatory filings. The company is expected to release its quarterly financial results later this week.

The latest initiative comes as major technology companies increase spending on AI infrastructure while reassessing staffing and operating costs. Microsoft previously eliminated nearly 5,000 jobs in July with significant cuts affecting its Xbox gaming division.

Other technology firms have also announced workforce reductions. Amazon announced 16,000 global job cuts in January while eBay eliminated 1,000 positions earlier this month. Meta cut around 8,000 jobs in May and Uber announced plans in September to reduce its workforce by approximately 10 per cent. Netflix has also reportedly planned job cuts.

Meanwhile, Amazon, Microsoft, Alphabet and Meta are collectively expected to spend about $700 billion on AI data centres, chips and computing infrastructure during 2026.

Microsoft reported spending $41 billion between April and June and previously projected higher expenditure for the following quarter. However it revised its full-year 2026 spending forecast down from $190 billion to $175 billion.

The developments highlight the growing tension between technology companies’ investments in AI and their efforts to control costs and restructure their workforces.