Microsoft offers voluntary buyouts to 60,000 employees to cut costs amid AI spending

Microsoft has announced a voluntary buyout program for approximately 60,000 employees, accounting for over a quarter of its global workforce, in an effort to control costs and fund its growing investments in artificial intelligence (AI). The initiative, open to eligible staff in teams located in Canada, India, the United Kingdom, and the United States at level 70 and below, was disclosed on Monday.

Microsoft, which had 223,000 full-time employees as of June 30, 2026, will provide eligible employees with details within hours of the announcement. The offer encompasses various departments, including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices, but excludes marketing, commercial business, and security units.

Microsoft Chief People Officer Amy Coleman explained that the program aims to assist employees contemplating departure while enabling participating teams to adjust their workforce in response to evolving business requirements. This strategy builds upon insights gained from a previous voluntary retirement program. The move follows Microsoft's escalating AI infrastructure investments, which involve billions of dollars in data centers and chips, as investors scrutinize the potential returns on such substantial expenditures.

The company is set to release its first-quarter results after the market closes on Wednesday, offering insights into its financial progress amid its continued AI-driven investments. This latest voluntary buyout program follows other workforce reduction measures Microsoft announced earlier this year, aimed at enhancing returns from its gaming division following years of significant investment.