- Around 60,000 employees could qualify for the voluntary buyout programme, according to a source familiar with the matter.
- Eligible staff in participating teams in the US, UK, Canada and India can apply.
- Microsoft has forecast $175bn in capital expenditure for 2026 as it builds out its AI infrastructure.
Microsoft is offering voluntary buyouts to around 60,000 employees as the technology giant looks to manage costs while committing billions of dollars to artificial intelligence infrastructure.
The programme covers more than a quarter of the company’s global workforce of 223,000 full-time employees, based on figures reported in its annual filing as of June 30, 2026. However, the offer does not mean that 60,000 jobs will be cut, as participation is voluntary and the number of employees who accept it is not yet known.
Employees across several parts of the business, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, are eligible, according to a source familiar with the matter who spoke to Reuters on condition of anonymity. Marketing, commercial business and security teams are excluded.
The programme is available to eligible employees in participating teams in Canada, India, the UK and the US at level 70 and below. Microsoft described it as a time-limited voluntary scheme, building on experience from an earlier voluntary retirement programme.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Chief People Officer Amy Coleman said in a staff memo.
“It also gives participating organizations another way to adapt their workforce to changing needs,” she added.
AI investment puts pressure on costs
The buyout programme comes as Microsoft and other major technology companies pour money into the computing infrastructure needed to develop and run AI systems. Spending on data centres, advanced chips and related facilities has attracted investor scrutiny over whether the eventual returns will justify the cost.
Microsoft has forecast $175bn in capital expenditure for the 2026 calendar year. The company is due to report its latest quarterly results after US markets close on Wednesday (28), giving investors another opportunity to assess the impact of its AI spending.
The company’s shares, which had risen around 10 per cent this year, were up about 1 per cent on Monday (26).
Microsoft has already used voluntary buyouts and job cuts as it adjusts its workforce. Earlier this year, it offered voluntary buyouts to around 9,000 US employees, equivalent to about 7 per cent of its US workforce, according to Reuters.
In July, the company announced 4,800 job cuts, or about 2.1 per cent of its global workforce, as it reorganised its Xbox gaming business and planned to divest up to five studios.
The latest programme gives eligible employees another option to leave the company with support, while allowing Microsoft to adjust staffing in participating teams.
What does this mean for Microsoft’s workforce?
The scale of the latest offer highlights the challenge facing technology companies as they redirect resources towards AI while managing existing businesses and operating costs.
Microsoft is investing heavily in AI products and infrastructure, including its Copilot services and the data centres needed to support growing computing demand. The company must balance those investments against expectations that its spending will eventually generate sustainable growth.
The voluntary nature of the programme means its immediate effect on headcount will depend on how many eligible employees choose to take the offer. Microsoft has not disclosed how many staff it expects to leave through the scheme.
The company’s upcoming results will also be closely watched for details of its spending plans and the returns it is seeing from AI. For investors, the key question is whether the investment can deliver sufficient growth to justify the scale of the infrastructure build-out.
