Microsoft is offering voluntary buyouts to about 60,000 employees, or roughly 27% of its global workforce, as the software company invests heavily in artificial intelligence. The offer covers eligible workers in the United States, Canada, India and the United Kingdom.
60,000 workers eligible
Microsoft announced the time-limited Voluntary Exit Offer on October 26. It applies to participating organizations and employees at level 70 or below. Not every team is included, and Microsoft did not say how many employees it expects to accept the offer. (Microsoft)
Reuters reported that the participating areas may include AI experiences, Copilot, finance, human resources, Xbox and Windows and Devices. Marketing, the commercial business and security organizations are excluded, according to a source familiar with the plan. (Reuters)
AI costs shape staffing
The offer comes as Microsoft tries to contain costs while expanding its AI infrastructure. The company had about 223,000 full-time employees as of June 30, 2026, and is spending heavily on data centers, chips and other infrastructure needed to run AI services, including Copilot.
Reuters reported that Microsoft has forecast $175 billion in capital expenditures for calendar year 2026. The company has also reduced its workforce through earlier voluntary departures and job cuts. (Reuters)
Offer limits and timing
Microsoft said eligible employees would receive details by email, along with financial support and career-planning resources. Participation depends on each organization’s priorities, customer commitments and workforce needs. (Microsoft)
The offer follows an earlier voluntary retirement program and comes after Microsoft announced 4,800 job cuts in July, including reductions at Xbox. Microsoft is scheduled to report quarterly results on October 28. (Associated Press)
References
Associated Press. (2026, October 26). Microsoft offers a quarter of its global workforce voluntary buyouts as AI spending accelerates. AP News. https://apnews.com/article/microsoft-buyout-ai-layoff-xbox-c5a639f53615be198db1799adf6837e1
Coleman, A. (2026, October 26). Introducing a voluntary exit offer. The Official Microsoft Blog. https://blogs.microsoft.com/blog/2026/10/26/introducing-a-voluntary-exit-offer/
Reuters. (2026, October 26). Microsoft offers buyouts to around 60,000 employees to contain costs. MarketScreener. https://uk.marketscreener.com/news/microsoft-offers-buyouts-to-around-60-000-employees-to-contain-costs-ce785cdcdf8bf424