Microsoft announced on Monday that it is offering voluntary buyout packages to approximately 60,000 employees, representing more than a quarter of its global workforce, as part of a broader cost-containment strategy to fund its expanding artificial intelligence investments.
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The buyout offer targets staff across multiple core business units, including Windows + Devices, Xbox, Copilot, AI experiences, finance, and human resources. However, key operational divisions such as security, marketing, and commercial business are excluded from the program.
The voluntary transition plan is restricted to full-time employees at internal job grade Level 70 and below across four primary markets: the United States, Canada, the United Kingdom, and India.
In an internal memo, Chief People Officer Amy Coleman indicated that the time-limited program provides departing staff with transition support while allowing participating organizations to realign internal resources to shifting corporate priorities.
The voluntary severance initiative follows earlier restructuring moves executed throughout the year. Microsoft previously offered voluntary packages to roughly 9,000 US workers (7% of its domestic headcount) before cutting 4,800 positions in July to streamline its Xbox gaming division.
The cost-cutting drive comes as big tech firms face intense investor scrutiny regarding staggering capital outlays required for artificial intelligence infrastructure:
- Global Workforce: Microsoft reported 223,000 full-time employees globally as of 30 June 2026.
- Capital Outlay: The tech giant has forecast capital expenditure of $175 billion (approx. R2.88 trillion) for calendar year 2026, driven primarily by data centre expansions and specialized chip acquisitions.
Despite market focus on AI spending returns, Microsoft shares traded up 1% following the announcement ahead of its quarterly earnings release.
