Microsoft offers buyouts to 60,000 employees amid AI spending push
The technology giant has launched a voluntary exit programme covering more than a quarter of its global workforce as it restructures operations and increases investment in artificial intelligence
27 October, 2026
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Microsoft has announced a voluntary exit programme for approximately 60,000 employees, representing more than a quarter of its global workforce, as the US technology giant seeks to manage costs and restructure operations amid significant investments in artificial intelligence (AI).
The programme, announced on Monday, October 26, will allow eligible employees across the United States, Canada, the United Kingdom and India to leave the company with financial compensation and career transition support.
The move comes as Microsoft continues to reorganise its business following several rounds of layoffs, including approximately 4,800 job cuts in July 2026 and more than 15,000 reductions during 2025.
According to Reuters, the latest initiative is part of Microsoft’s efforts to contain operating costs while directing substantial capital towards AI infrastructure and data centres.
However, the company has not announced 60,000 layoffs. The figure represents employees eligible to accept voluntary buyouts, with the actual number of departures yet to be determined.
Microsoft layoffs: Who is eligible for the buyout programme?
The new Voluntary Exit Offer covers employees in selected business divisions, including Windows, Xbox, Copilot, AI-related operations and finance.
Employees at Microsoft’s internal level 70 and below, including certain senior executives, are eligible to participate. However, some departments, including sales, marketing and selected engineering functions, have been excluded.
Amy Coleman, Microsoft’s executive vice president and chief people officer, said the initiative would give employees greater flexibility while allowing business units to adjust their workforce requirements.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Coleman said in an internal communication.
Eligible employees will have until the first week of December to decide whether to accept the offer, with departures expected by December 31.
Compensation packages will generally follow Microsoft’s existing severance arrangements, with payments determined by factors including employee seniority, tenure and applicable local regulations.
The packages also include provisions for continued stock vesting, healthcare benefits for a specified period and career transition assistance.
Microsoft has not disclosed how many employees it expects to accept the offer.
AI investment drives workforce restructuring
The latest initiative comes as Microsoft continues to allocate billions of dollars towards expanding its AI capabilities, cloud infrastructure and data centre capacity.
The company employed approximately 223,000 full-time workers globally as of June 30, 2026, compared with 228,000 a year earlier.
Microsoft has forecast approximately $175bn in capital expenditure during calendar year 2026, reflecting the scale of investment required to support growing demand for AI services.
The spending has increased scrutiny from investors over the returns generated by AI infrastructure and the company’s ability to maintain profitability while funding expansion.
The restructuring also reflects a broader shift across the technology industry, where major companies are reviewing staffing requirements, simplifying operations and redirecting resources towards AI-related growth opportunities.
Microsoft has previously maintained that its eliminated positions are not simply being replaced by AI, although it has acknowledged that the technology is changing how work is performed.
Previous Microsoft layoffs in 2026
The voluntary exit offer follows a series of workforce reductions at Microsoft as the company reshapes its business.
In July, Microsoft announced the elimination of approximately 4,800 positions, equivalent to 2.1 per cent of its global workforce, with reductions concentrated in its commercial and Xbox gaming divisions.
The company also introduced a voluntary retirement programme earlier in 2026, targeting approximately 8,750 eligible US employees. More than 30 per cent accepted the offer.
In its July restructuring announcement, Microsoft said it had redeployed more than 4,000 employees into new positions over the preceding year, reflecting its efforts to reduce involuntary job losses.
The company has indicated that voluntary exit programmes will not necessarily replace layoffs, with further workforce adjustments remaining possible depending on business requirements.
Microsoft is scheduled to report its latest quarterly financial results on Wednesday, October 28, when investors will be watching for updates on AI spending, profitability and the financial implications of its restructuring initiatives.




















