Microsoft offers a quarter of its global workforce voluntary buyouts as AI spending accelerates

Microsoft has extended a voluntary buyout offer to approximately 60,000 employees, representing about one-quarter of its global workforce. The company, which disclosed this initiative in a Monday blog post, extended the offer to eligible individuals in Canada, India, the United Kingdom, and the United States. Amy Coleman, Microsoft's Chief People Officer, emphasized that the Voluntary Exit Offer is a novel approach for the company.

Coleman stated that while the company will learn from the experience, it remains committed to helping employees concentrate on their essential responsibilities, acquire new skills, and, where applicable, explore opportunities within Microsoft. The company, which reported its quarterly financial results on Wednesday, currently employs around 223,000 full-time staff as of the end of June.

Microsoft's stock, valued at approximately $1.80 per share, experienced an all-time high this month, with the share price increasing by roughly 1% on Monday. In May, Microsoft had planned to offer buyouts to around 8,750 employees, or 7% of its U.S. workforce. In July, the company announced the layoff of 4,800 employees, constituting approximately 2.1% of its global workforce, including a significant portion from its Xbox video game division.

The surge in investment in data centers, anticipated to surpass $700 billion this year, aimed at powering AI technologies, has led to increased costs for memory chips, computer processors, and other equipment, as well as electricity. Economists project that these factors will contribute to inflationary pressures persisting through the remainder of the year.

Microsoft has been intensifying its AI capabilities for several years. In 2024, the company unveiled a new generation of AI-equipped personal computers that integrated its AI assistant, named Copilot, into the Windows operating system for PCs, a move that has garnered significant attention from millions of consumers. Additionally, in October 2025, Microsoft introduced an innovative AI character known as Mico, a whimsical animated face resembling a blob or flame that embodies the essence of Microsoft's Copilot virtual assistant.