Microsoft offers voluntary buyouts to 60,000 employees

• Microsoft is offering voluntary buyouts to around 60,000 employees.
• The company has forecast $175 billion in capital expenditure for 2026.
• The offer follows earlier buyouts and job cuts, including restructuring in Xbox.

Microsoft is offering voluntary buyouts to around 60,000 employees as it aims to fund its growing investment in artificial intelligence while controlling costs.

As reported by Reuters, the programme is available to eligible employees in Canada, India, the UK and the US at level 70 and below. Teams across Xbox, Windows, Copilot, AI experiences, finance and human resources are among those eligible, while marketing, commercial business and security teams are excluded.

"This offer gives eligible employees who may be considering a future outside ⁠the company a new choice to make that transition now with support," said Microsoft chief people officer Amy Coleman in a memo. 

“It also gives participating organisations another way to adapt their workforce to changing needs."

Funding AI growth

The company is investing heavily in AI data centres and chips, with $175 billion in capital expenditure forecast for the 2026 calendar year. The spending has drawn investor scrutiny over whether the returns will justify the cost.

Microsoft had 223,000 full-time employees worldwide as of June 30th, 2026. The company said the buyout programme is voluntary, time-limited and based partly on lessons from an earlier voluntary retirement scheme.

The offer follows a programme earlier this year that covered around 9,000 employees, or 7% of Microsoft's US workforce. Eligible employees are expected to receive details of the new programme shortly.

Microsoft also announced plans to cut 4,800 jobs globally as it restructured its Xbox gaming business and prepared to divest up to five studios.