Microsoft Offers Voluntary Buyouts to 60,000 Employees Amid AI Spending

Microsoft

Microsoft building.

Microsoft said on Monday it was offering voluntary buyouts to around 60,000 employees, as the technology giant seeks to control costs and help finance its substantial investments in artificial intelligence (AI).

"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.

Like other major technology companies, Microsoft is investing hundreds of billions of dollars in AI data centres and chips. The scale of the spending has raised questions among investors about whether the eventual returns will justify the costs.

The company, which was scheduled to report its first-quarter results after markets closed on Wednesday, has forecast capital expenditure of $175 billion for the 2026 calendar year.

Microsoft had 223,000 full-time employees worldwide as of 30 June 2026, according to its annual filing.

Its shares, which had risen by around 10 per cent this year, gained approximately 1 per cent on Monday. Business Insider was the first to report the buyout offer.

Earlier this year, Microsoft offered voluntary buyouts to around 7 per cent of its US workforce, or approximately 9,000 employees.

In July, the company also announced plans to cut 4,800 jobs, equivalent to about 2.1 per cent of its global workforce, as it restructured its Xbox gaming business and prepared to divest up to five studios. The move was aimed at improving returns following years of substantial investment in the division.

"This offer will be available ⁠to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below," Microsoft said on Monday.

The company said it was a time-limited, voluntary ⁠program and built on insights gained from a previous voluntary retirement program. The eligible employees will receive details within the next few hours, it added.

Source: Reuters



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