Microsoft has announced a voluntary employee buyout programme that could cover around 60,000 workers across India, the United States, the United Kingdom and Canada. The initiative comes as the technology giant increases spending on artificial intelligence (AI) infrastructure while seeking to manage workforce costs.
The time-limited programme is available to eligible employees at level 70 and below in participating teams across the four countries. Microsoft said employees would receive details of the offer, which allows them to leave the company voluntarily with financial and transition support.
According to information cited in the report, the programme covers several divisions, including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices. Marketing, commercial business and security teams are excluded.
Microsoft had 223,000 full-time employees worldwide as of June 30, 2026, according to its annual filing. If around 60,000 employees are eligible, the programme could reach more than a quarter of its global workforce, although eligibility does not mean all those employees will leave.
Microsoft Links Buyouts to Workforce Changes
Chief People Officer Amy Coleman said the initiative gives eligible employees considering opportunities outside the company an option to make the transition with support. She added that participating organisations would gain another way to adapt their workforce to changing business requirements.
The programme builds on lessons from an earlier voluntary retirement initiative. Microsoft is introducing the offer as technology companies reassess staffing needs while directing significant resources towards AI development.
AI Infrastructure Spending Remains a Priority
Microsoft has forecast capital expenditure of $175 billion for the 2026 calendar year. The investment reflects the growing demand for computing infrastructure, including data centres and specialised chips needed to develop and operate AI systems.
However, the scale of spending has prompted investors to question whether future returns will justify the costs. Microsoft's upcoming quarterly earnings report is expected to provide further insight into its financial performance and the progress of its AI investments.
Earlier Job Cuts and Xbox Restructuring
The latest programme follows an earlier voluntary buyout offer covering approximately 9,000 employees, or around 7% of Microsoft's US workforce, according to the report.
In July, the company also announced plans to cut 4,800 jobs as part of changes to its Xbox gaming business and plans to divest up to five studios. The restructuring was intended to improve returns from the gaming division following years of substantial investment.
Microsoft shares rose around 1% on Monday after the latest buyout programme was reported. The company is scheduled to release its first-quarter results after markets close on Wednesday, with investors closely monitoring how its AI spending translates into growth and profitability.
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