Key Takeaways
- Microsoft is offering voluntary buyouts to 60,000 employees, roughly a quarter of its workforce.
- The offer is part of the company's strategy to cut costs while investing in artificial intelligence.
- Around 27% of Microsoft’s workforce is eligible for the new buyout offer.
Tech giant Microsoft has announced a voluntary exit package for approximately 60,000 employees, roughly a quarter of its global workforce, as part of its cost-cutting measures while investing heavily in artificial intelligence (AI).
According to a company spokesperson, the voluntary exit offer is available to staff at vice president level and below in select teams in the United States, Canada, India, and Britain, with certain groups, such as those working on data centres, sales, and marketing, excluded.
In a memo to employees, Amy Coleman, executive vice president and chief people officer, stated, 'The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter.'
This is the second voluntary buyout offer Microsoft has made this year. In April, the company reportedly offered around 7% of its US workforce the option to retire early, with around 30% of those eligible taking the voluntary retirement plan, according to CNBC.
Microsoft's global workforce stood at 223,000 employees at the end of June, down from 228,000 at the end of 2025, according to regulatory filings. The company is expected to report its quarterly earnings later this week.
Tech layoffs continue as major tech giants pour billions into AI-related investments. Netflix is reportedly cutting around 6% of its workforce, or 1,000 jobs, while eBay laid off 1,000 employees earlier this month. In May, Meta laid off around 10% of its global workforce, impacting around 8,000 employees.
Ride-hailing giant Uber said in September that it would lay off around 10% of its staff, impacting an estimated 3,000 or more employees. E-commerce giant Amazon announced 16,000 global job cuts in January. Microsoft previously cut nearly 5,000 jobs in July, heavily targeting its Xbox gaming division.
Collectively, Amazon, Microsoft, Alphabet, and Meta are on track to pour roughly $700 billion into AI data centres, chips, and computing infrastructure this year alone. In July, Microsoft said it spent $41 billion overall between April and June and expected to increase its spending to $50 billion between July and September.
The company also adjusted its forecast for total spending in the 2026 calendar year to $175 billion, down from $190 billion previously. Around two-thirds of its spending goes towards 'short-lived assets,' specifically chips, due to customer demand for 'both AI and non-AI infrastructure,' Chief Financial Officer Amy Hood said during a call with analysts.
The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter.
Amy Coleman, Executive vice president and chief people officer
