Microsoft announced on Monday, Oct. 26, that it is offering voluntary buyouts to approximately 60,000 employees globally, representing more than a quarter of its workforce. According to a source familiar with the matter who spoke with Reuters, the cost-containment measure is designed to help fund the technology giant's massive artificial intelligence investments.
The time-limited voluntary program is open to eligible staffers at level 70 and below across participating teams in the United States, United Kingdom, Canada, and India. Affected areas include Windows + Devices, AI experiences, Copilot, Xbox, human resources, and finance. Meanwhile, units such as security, marketing, and commercial business are excluded from the offer.
"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support," Chief People Officer Amy Coleman said in an internal staff memo. "It also gives participating organizations another way to adapt their workforce to changing needs."
The tech industry has faced intense investor scrutiny regarding the staggering capital expenditures required for AI data centers and specialized chips. Microsoft has forecast $175 billion in capital expenditures for the 2026 calendar year and is scheduled to report its first-quarter financial results after the market closes on Wednesday. As of June 30, 2026, the company reported 223,000 full-time employees worldwide.
