Microsoft Offers Voluntary Buyouts to 60,000 Employees as AI Spend Rises

On Monday, Microsoft rolled out a voluntary buyout program for 60,000 staff across four countries, signaling a shift toward cost efficiency amid a surge in AI investment.

Eligible staff are at VP level or below, covering select teams in the U.S., Canada, India and Britain; employees in data centres, sales and marketing are excluded. Amy Coleman, Microsoft’s executive vice‑president and chief people officer, said the offer reflects a new flexibility model that lets workers shape their next chapter.

This is the second voluntary exit offer this year. In April, Microsoft offered early retirement to roughly 7% of its U.S. workforce, and about 30% accepted.

Microsoft’s global headcount fell from 228,000 at the end of 2025 to 223,000 by June 2026—a 2.2% decline—while the buyout targets roughly 27% of the workforce.

Analysts will weigh whether the cost cuts offset AI spending when Microsoft reports Q4 earnings on Friday. The company’s financial statements will also show how the $4,200 crore AI budget is distributed across projects.