Microsoft plans to offer voluntary buyouts to about 60,000 employees as it works to control costs and support its growing artificial intelligence business. The move could affect more than one-quarter of the company’s global workforce.
The offer will give eligible workers a chance to leave the company with support. Microsoft said the program is designed for employees who may already be thinking about a future outside the business. It will also help teams adjust their staffing levels as their needs change.
The plan covers workers in several parts of the company. These include teams linked to Windows, Xbox, Copilot, AI experiences, finance and human resources. However, some groups, including marketing, commercial business and security, will not take part, according to a source familiar with the matter.
The source said eligible employees must work in participating teams in Canada, India, the United Kingdom or the United States. The offer will apply to staff at level 70 and below. The source asked not to be named because the details were private.
Microsoft Chief People Officer Amy Coleman shared the plan in a staff memo. She said the offer would give employees who are considering leaving the company a new option. She added that it would also give business teams another way to respond to changing needs.
The company described the program as voluntary and limited in time. Eligible workers are expected to receive further details about the offer. Microsoft also said the plan builds on lessons from an earlier voluntary retirement program.
The announcement comes as Microsoft increases its spending on artificial intelligence. Like other large technology companies, it is investing heavily in data centers, computer chips and systems that can support AI services. These projects require large amounts of money and have raised questions about future returns.
Microsoft has forecast $175 billion in capital spending for the 2026 calendar year. The scale of that investment shows how important AI has become to its long-term plans. At the same time, investors want to know whether the new technology will generate enough income to cover its costs.
The company had 223,000 full-time employees worldwide as of June 30, 2026, according to its annual filing. A buyout offer covering 60,000 workers would reach more than one-quarter of that total. Still, only employees who meet the program’s rules will be able to accept the offer.
The latest plan follows earlier efforts to change the company’s workforce. Earlier in 2026, Microsoft offered voluntary buyouts to about 9,000 workers in the United States. That number represented around 7% of its US workforce.
Microsoft also announced 4,800 job cuts in July. The cuts formed part of a wider change to its Xbox gaming business. The company was seeking better returns after years of major spending in the division. It also planned to sell or close up to five game studios as part of the changes.
The new offer provides another way for Microsoft to reduce costs while changing how its teams work. Voluntary buyouts allow employees to decide whether they want to leave. The company has not said how many workers it expects to accept the latest offer.
The move also comes at a time when technology firms face strong pressure to compete in AI. Companies are spending billions to build the systems needed to run advanced tools and services. They must also show that these investments can lead to steady growth and stronger profits.
Microsoft shares rose about 1% on Monday. The stock had gained around 10% earlier in the year. Investors are watching how the company manages its spending as it continues to develop AI products and services.
Microsoft is due to report its first-quarter results after markets close on Wednesday. The report may provide more information about its financial performance and investment plans. Investors will likely focus on the cost of its AI projects and how those investments are affecting the business.
The buyout offer marks another step in Microsoft’s effort to adjust its workforce as its priorities change. The company is trying to balance the need for new technology with the need to manage costs. The number of employees who accept the offer will help show how much the program changes its workforce.
For now, Microsoft has confirmed that the offer is voluntary and will be available only to eligible staff in selected teams and countries. The company will provide further information to workers who qualify. The final effect on its global workforce will depend on how many employees choose to take part.
