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Wednesday, October 28, 2026 9:52 AM

Microsoft Offers Voluntary Buyouts to 60,000 Employees Amid Rising AI Investments

ArdorComm Media News Network

Microsoft has announced a voluntary buyout programme for approximately 60,000 employees, representing more than a quarter of its global workforce, as the technology company seeks to control costs and finance its expanding investments in artificial intelligence (AI).

According to a source familiar with the matter, the programme will cover employees across several divisions, including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices. Marketing, commercial business and security teams will be excluded from the initiative.

Microsoft Chief People Officer Amy Coleman said in an internal memo that the offer would provide eligible employees considering opportunities outside the company with a supported transition option. She added that the programme would also help participating business units adjust their workforce to evolving organisational requirements.

The move comes as Microsoft and other major technology companies continue to invest hundreds of billions of dollars in AI infrastructure, including data centres and advanced chips. These substantial expenditures have attracted investor attention over concerns about the potential returns on such investments. Microsoft has projected capital expenditure of $175 billion for the 2026 calendar year.

The company reported 223,000 full-time employees worldwide as of June 30, 2026, according to its annual filing. The latest buyout offer follows an earlier voluntary programme introduced this year for approximately 9,000 employees, accounting for around 7% of its US workforce.

In July, Microsoft also announced plans to eliminate 4,800 jobs, representing approximately 2.1% of its global workforce, as part of a restructuring of its Xbox gaming business. The changes included plans to divest up to five gaming studios as the company sought to improve returns from the division.

The latest voluntary buyout scheme will be available to eligible employees at level 70 and below in participating teams across Canada, India, the United Kingdom and the United States. Microsoft described the initiative as a time-limited programme informed by lessons from its previous voluntary retirement scheme. Eligible employees were expected to receive further details shortly after the announcement.

Source: Reuters