Microsoft is offering voluntary buyouts to around 60,000 employees, representing more than a quarter of its global workforce, as it seeks to manage costs and fund its AI investments.
Reuters reported the development following an earlier report by Business Insider.
The time-limited programme is available to eligible employees at level 70 and below in participating teams across the US, Canada, India and the UK.
Affected divisions include AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices.
The programme excludes marketing, commercial business and security teams.
Microsoft is offering the buyouts in the US, Canada, India and the UK, but not Singapore.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,”
said Amy Coleman, Microsoft’s Chief People Officer, in a staff memo.
“It also gives participating organisations another way to adapt their workforce to changing needs.”
Microsoft said the voluntary programme builds on insights gained from an earlier voluntary retirement initiative.
Microsoft’s AI spending under investor scrutiny
The move comes as Microsoft and other major technology companies increase spending on AI infrastructure, including data centres and chips.
Microsoft has forecast US$175 billion in capital expenditure for calendar year 2026, raising investor questions about whether its AI investments will generate sufficient returns.
The company is scheduled to report its fiscal first-quarter results after US markets close on Wednesday (28 October).
According to its annual filing, Microsoft employed 223,000 full-time staff globally as of 30 June 2026.
Microsoft’s earlier workforce reductions
Earlier this year, Microsoft offered voluntary buyouts to approximately 9,000 employees, representing around 7% of its US workforce.
In July, the company announced plans to cut 4,800 jobs, equivalent to about 2.1% of its global workforce.
The restructuring included changes to its Xbox gaming business and plans to divest up to five studios as Microsoft sought to improve returns following years of investment in the division.
Featured image credit: Edited by Fintech News Singapore, based on image by lifeforstock via Magnific
