Microsoft Offers Buyouts to About 60,000 Employees as AI Spending Rises

Microsoft said on Monday that it is offering voluntary buyouts to about 60,000 employees, more than a quarter of its global workforce, as the company works to contain costs while it spends heavily on artificial intelligence.

The company calls the program a Voluntary Exit Offer. Chief People Officer Amy Coleman announced it in a note to staff on Monday, and Microsoft also posted the message on its official blog. Reports from Business Insider and Bloomberg put the number of eligible employees at about 60,000. Microsoft had 223,000 full-time employees worldwide as of June 30, 2026, according to its annual filing.

Who the offer covers

The offer is open to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below, which reports describe as vice president level and below. Not every part of the company is taking part. A source familiar with the matter told Reuters that staff in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices are among those who would be eligible, while units such as marketing, commercial business and security are excluded. Other reports said data center, sales and marketing teams are also outside the offer.

Coleman wrote that the offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. She said it also gives participating organizations another way to adapt their workforce to changing needs. Employees who take the offer will receive benefits similar to a standard severance package, the reports said. Eligible staff were told to expect an email with their personal details within a few hours. Reports said employees have until early December to decide, with departures planned by the end of 2026.

A workforce reshaped around AI spending

The buyout comes as Microsoft spends on a scale that has drawn close attention from investors. The company has forecast 175 billion dollars in capital spending for the 2026 calendar year, much of it for AI data centers and chips, and it is due to report first quarter results after markets close on Wednesday. Shares of Microsoft were up about 1 percent on Monday, and the stock had risen about 10 percent this year.

This is the second voluntary program Microsoft has run this year. Earlier this year the company offered buyouts to retirement age employees, and more than 30 percent of the roughly 8,750 eligible workers accepted. In July, Microsoft announced it would cut 4,800 jobs, or about 2.1 percent of its global workforce, in an overhaul of its Xbox gaming business. The new offer is far broader than the retirement program. It reaches workers in four countries and covers staff well below retirement age.

Microsoft has not said how many employees it expects to accept, and it did not immediately comment on the number of employees affected when Reuters contacted it. How many people take the offer will decide whether a voluntary program on this scale can reshape the workforce on its own, or whether the company returns to direct job cuts in the months ahead.