Microsoft offers voluntary exit packages to 60,000 staff as AI spending continues to soar

Microsoft is providing voluntary buyout packages to around 60,000 employees, approximately a quarter of its workforce, to help the company reduce costs while heavily investing in artificial intelligence (AI). Eligible staff members at vice president level and below from various US, Canada, India, and Britain teams will be offered the option to leave the company on a voluntary basis. However, certain groups, including those working on data centers, sales, and marketing, are excluded from the program.

Amy Coleman, Microsoft's executive vice president and chief people officer, explained that the voluntary exit offer is part of the company's evolving approach to change, aiming to provide greater flexibility and options for employees during this transition. This is the second voluntary buyout offer from Microsoft this year, following a similar initiative in April where around seven percent of the US workforce was provided with the option to retire early. Of those eligible, about 30 percent chose to take the voluntary retirement plan, according to CNBC.

Microsoft has 223,000 employees globally, down from 228,000 at the end of 2025, with 27 percent of its workforce being eligible for the new buyout offer. The company anticipates reporting its quarterly earnings later in the week. As AI spending continues to surge among major tech companies, concerns have been raised about the potential impact on jobs. Industry experts, including Anthropic CEO Dario Amodei, have warned about the possibility of widespread job losses due to AI advancements.

In recent months, several tech giants have announced significant layoffs. Netflix plans to cut around 6 percent of its workforce, or 1,000 jobs, while eBay laid off 1,000 employees earlier this month. Meta laid off approximately 10 percent of its global workforce, impacting around 8,000 employees, and even canceled plans to hire an additional 6,000 people and reassign 7,000 others into AI roles.

Uber announced it would let go of around 10 percent of its staff, affecting an estimated 3,000 or more employees, and Amazon announced 16,000 global job cuts in January.

Microsoft's spending on AI-related infrastructure and activities has reached $41 billion between April and June, with expectations to increase to $50 billion between July and September. However, the company adjusted its forecast for the entire 2026 calendar year, reducing the total spending estimate to $175 billion, down from the previously projected $190 billion.

Around two-thirds of Microsoft's spending is directed towards "short-lived assets," primarily chips, due to customer demand for both AI and non-AI infrastructure.