Microsoft is offering voluntary buyouts to about 60,000 employees across the United States, Canada, India and the United Kingdom as the technology giant seeks to control costs and reshape its workforce amid heavy investment in artificial intelligence.
The program covers eligible employees at participating teams at vice president level and below, excluding certain groups, including some data center, sales and marketing personnel, according to Bloomberg News. Microsoft had 223,000 full-time employees worldwide as of June 2026, meaning roughly 27% of its workforce could qualify for the offer.
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The voluntary exit program is intended to give eligible employees an opportunity to leave the company with financial support while allowing Microsoft to adjust staffing to changing business needs. Employees who accept the offer will receive benefits similar to those provided under a standard severance package, according to the company.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Amy Coleman, Microsoft’s chief people officer, said in a note to employees.
Coleman added that the program would give participating business units another way to adapt their workforces to changing needs.
AI spending drives cost-control efforts
The buyout offer comes as Microsoft increases spending on AI infrastructure, including data centers and specialized chips, to support demand for cloud computing and AI services.
The company has forecast approximately $175 billion in capital expenditures for calendar year 2026, according to Reuters. The investment reflects the growing cost of building and operating the computing infrastructure needed to develop and run advanced AI systems.
Microsoft and other major technology companies have committed substantial resources to AI infrastructure as they compete to expand their cloud and generative AI businesses. However, the spending has also increased pressure to manage expenses and demonstrate returns on those investments.
Microsoft’s workforce has remained relatively stable in recent years despite restructuring and job cuts. The company employed 223,000 full-time workers globally as of June 30, 2026, according to its annual filing. The latest buyout program could affect employees across several major divisions, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, Reuters reported, citing a source familiar with the matter. Marketing, commercial business and security units are among those excluded, according to the report.
Follows earlier voluntary retirement offer
The new initiative follows Microsoft’s voluntary retirement program earlier in 2026, which offered eligible employees an opportunity to leave the company.
More than 30% of approximately 8,750 employees eligible for that earlier program accepted the offer, according to Bloomberg News. Microsoft expects fewer employees to take up the latest buyout proposal, a company spokesperson told Bloomberg.
The company has also undertaken job cuts this year. In July, Microsoft announced plans to cut 4,800 jobs as it restructured its Xbox gaming business and sought to improve returns from the division. The latest program differs from conventional layoffs because participation is voluntary. Microsoft has not announced how many employees it expects to leave under the offer.
Technology industry reshapes workforces
Microsoft’s move comes amid a wider shift across the technology sector, where companies are reorganizing staffing and allocating more resources to AI development and infrastructure.
Google has offered voluntary buyouts to employees in several divisions, while Meta Platforms has reduced its workforce from its late-2022 peak, Bloomberg reported. Technology companies are also reassessing hiring priorities as they invest in AI tools and seek employees with skills suited to rapidly changing business needs.
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For Microsoft employees, the decision to accept a buyout may depend on the terms of the package, career plans and prospects for finding another job. The company has said the offer is intended to support employees considering opportunities outside the organization.
Microsoft’s latest program underscores the challenge facing large technology companies as they balance the costs of expanding AI capabilities with workforce planning and financial discipline. The number of employees who ultimately accept the offer remains uncertain.