Microsoft said on Monday it is offering voluntary buyouts – severance packages for staff who choose to leave – to about 60 000 employees, more than a quarter of its global workforce, as it looks to contain costs and help fund its massive AI investments.
Staff across the Windows maker would be eligible, including those working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, a source familiar with the matter told Reuters, asking not to be named because the matter is private. Units such as marketing, commercial business and security will be excluded, the source added.
“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 organisations another way to adapt their workforce to changing needs,” chief people officer Amy Coleman said in a staff memo.
Like other tech giants, Microsoft is spending hundreds of billions of dollars on AI data centres and chips, drawing scrutiny from investors over whether the returns will justify the staggering cost. The company, which reports results for its fiscal first quarter after markets close on Wednesday, has forecast capital expenditure of US$175-billion for calendar 2026.
Microsoft had 223 00 full-time employees worldwide on 30 June 2026, according to its annual filing.
“This offer will be available to eligible employees in participating teams in Canada, India, the UK and the US at level 70 and below,” Microsoft said on Monday. Levels are Microsoft’s internal job grades. The company described it as a time-limited, voluntary programme that builds on lessons from an earlier voluntary retirement programme, and said eligible employees would receive details within hours.
Voluntary buyouts
Earlier this year, Microsoft offered voluntary buyouts to about 7% of its US workforce, or about 9 000 employees. In July, it said it would cut 4 800 jobs, or about 2.1% of its global workforce, overhauling its Xbox gaming business and divesting up to five studios to boost returns after years of heavy investment in the division.
Microsoft’s shares, which had risen about 10% this year, were up about 1% on Monday. – Jaspreet Singh and Aditya Soni, with Deborah Sophia, (c) 2026 Reuters
