Microsoft MSFT is offering voluntary buyouts to about 60,000 employees as the technology giant looks to contain costs and fund its massive investments in artificial intelligence infrastructure.
The programme is available to eligible employees in the US, Canada, India and the UK at experience level 70 or below, according to a staff memo.
Microsoft had 223,000 full-time employees globally as of June 30, 2026, meaning the eligible group represents more than a quarter of its workforce.
Employees across several divisions, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, could qualify, Reuters reported.
Marketing, commercial business and security teams will be excluded.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs,” Chief People Officer Amy Coleman said in a staff memo.
Microsoft said the programme was time-limited and voluntary, building on insights from an earlier voluntary retirement initiative.
Eligible employees are expected to receive details within hours of the announcement.
AI investments put pressure on spending
The buyout offer comes as Microsoft commits enormous sums to data centres, advanced chips and other infrastructure needed to support AI services.
The spending has attracted scrutiny from investors concerned about how quickly the investments will translate into sustainable revenue and profits.
Microsoft has forecast $175 billion in capital expenditure for the 2026 calendar year.
In July, the company said capital expenditure for the September quarter would exceed $50 billion, compared with $34.9 billion in capital spending and finance leases during the same quarter a year earlier.
The company is scheduled to report its first-quarter results after markets close on Wednesday, putting its spending plans and returns from AI investments in focus.
Microsoft is also transforming its business model, increasingly seeking to charge customers according to their use of AI services.
It has equipped programmers, sales teams and supply chain workers with AI tools and has observed noticeable results, while reassessing the skills and staffing required to pursue its next phase of growth.
The challenge is to adapt the workforce without undermining the company’s financial position.
In the second quarter, Microsoft generated $19.64 billion in positive free cash flow, down 23% from a year earlier.
Cloud competitors Alphabet and Amazon both reported negative free cash flow during the period.
Buyouts follow earlier retirement offer and job cuts
The latest programme follows a series of workforce changes at Microsoft this year.
In April, the company introduced its first voluntary retirement programme, which was open to about 7% of its US employees, or roughly 9,000 workers.
Microsoft said in July that more than 30% of employees eligible for that programme had accepted the offer.
The earlier initiative was available to employees at senior director level 67 or below.
The new programme extends eligibility to experience level 70, reaching higher into the organisation, including some vice presidents, the person familiar with the matter said.
Microsoft has not set a target for the number of employees it expects to leave under the latest offer.
Some marketing, sales and engineering teams have decided not to participate, the person added.
Employees must decide whether to accept the offer in early December, with participating staff expected to leave on December 31.
In July, Microsoft also announced plans to cut 4,800 jobs, or about 2.1% of its global workforce, as it restructured its Xbox gaming business.
The changes included plans to divest up to five studios as the company sought to improve returns after years of heavy investment in gaming.
The latest buyout offer gives employees another route to leave voluntarily, rather than relying exclusively on compulsory redundancies to adjust staffing levels.
Companies across sectors rethink workforce needs
Microsoft’s move comes amid a wider wave of job cuts and restructuring as companies seek to control costs, improve efficiency and expand their use of AI.
Last week, American Express said it would eliminate 5% of its global workforce as it prepares for AI to take over more internal processes.
Barclays also announced plans to eliminate about 5,000 jobs this year as the UK bank expands its use of AI and pursues a broader cost-cutting programme.
Meta, the parent company of Facebook and Instagram, announced plans in April to cut 10% of its workforce, or about 8,000 employees, to improve efficiency.
Amazon has also announced multiple rounds of job cuts, including reductions in its retail division.
Oracle cut about 21,000 jobs in June, representing nearly 13% of its workforce, as it reallocated resources amid its AI ambitions.
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