Microsoft Offers Buyouts To 60,000 Employees As AI Spending Soars

Microsoft offered voluntary buyouts to approximately 60,000 employees Monday, the company confirmed, as the technology giant adjusts its workforce while pouring billions of dollars into artificial intelligence infrastructure.

The offers extend to roughly 27% of Microsoft’s global workforce, giving eligible employees an opportunity to leave the company with financial assistance and career planning resources. Microsoft Chief People Officer Amy Coleman announced the program Monday, saying it would give participating divisions more flexibility to adjust their staffing according to changing business needs.

“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 wrote in the announcement.

The buyouts are available to eligible employees at level 70 and below within participating divisions in the United States, Canada, the United Kingdom and India. Not all departments are participating, and eligibility depends on business priorities, customer commitments and workforce requirements.

Microsoft’s decision follows mounting expenses associated with its massive investments in artificial intelligence, including the construction of data centers and purchases of expensive computing equipment needed to train and operate increasingly sophisticated AI systems.

Microsoft’s artificial intelligence infrastructure spending has weighed on its free cash flow, with the company reporting $41 billion in quarterly capital expenditures and $19.6 billion in free cash flow during its July earnings call. Chief Financial Officer Amy Hood also projected in April that Microsoft’s overall headcount would decline year over year.

The buyouts span several major business areas, including AI experiences, Copilot, finance, human resources, Xbox and Windows and Devices, Reuters reported, citing a source familiar with the matter. Other divisions, including marketing, commercial business and security, are excluded from the program.

Microsoft employed approximately 223,000 full-time workers worldwide as of June 30. The approximately 60,000 employees eligible for buyouts represent more than one-quarter of that workforce, although eligibility does not mean those positions will be eliminated.

The company previously offered voluntary retirement packages to approximately 8,750 U.S. employees earlier in 2026, with roughly 30% accepting, according to GeekWire. Microsoft also announced approximately 4,800 job cuts in July, including reductions within its Xbox gaming division.