Microsoft has announced voluntary buyout packages for around 60,000 employees as the technology giant looks to control costs while investing heavily in artificial intelligence (AI).
The offer covers selected employees in the United States, Canada, India and Britain. Eligible staff include employees at vice president level and below, although some teams will not qualify.
Microsoft Expands Voluntary Exit Programme
Microsoft’s chief people officer, Amy Coleman, described the programme as part of the company’s changing approach to workforce management. She said the offer would give employees greater flexibility in deciding their next career steps.
However, the programme excludes some groups, including certain employees working in data centres, sales and marketing.
This marks Microsoft’s second voluntary buyout offer this year. In April, the company reportedly offered early retirement options to around seven per cent of its US workforce. About 30 per cent of eligible employees accepted that earlier offer.
Microsoft employed 223,000 people worldwide at the end of June, down from 228,000 at the end of 2025. The new programme could affect approximately 27 per cent of its workforce.
AI Investments Fuel Concerns Over Jobs
The announcement comes as major technology companies pour billions of dollars into AI infrastructure. At the same time, concerns continue to grow over the technology’s potential impact on employment.
Microsoft previously cut nearly 5,000 jobs in July, with significant reductions affecting its Xbox gaming division.
Other major technology firms have also announced workforce cuts. Amazon, Meta, eBay and Uber have reduced staffing or outlined further job reductions this year.
Meanwhile, Microsoft continues to increase its AI spending. The company previously projected annual spending of $175 billion for 2026, down from an earlier forecast of $190 billion.
The latest buyout programme highlights the growing pressure on technology companies to balance expensive AI expansion with workforce costs.
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