Microsoft offers buyouts to around 60k employees to contain costs

Microsoft is offering voluntary buyouts to about 60,000 employees - more than a quarter of its global workforce - as it seeks to control costs while funding an expansive push into artificial intelligence. The time-limited program covers eligible employees at level 70 and below in participating teams in Canada, India, the United Kingdom and the United States. Affected areas include AI experiences, Copilot, finance, human resources, Xbox, and Windows and Devices; marketing, commercial business and security are excluded. Microsoft says the offer provides employees considering leaving with support and gives participating teams another way to adjust staffing.

The move comes as Microsoft plans $175 billion in capital spending during calendar year 2026, largely on AI data centers and chips, raising investor questions about whether returns will justify the expense. The company had 223,000 full-time employees worldwide at the end of June. This year it has also offered buyouts to roughly 9,000 U.S. workers and announced 4,800 job cuts, including changes to its Xbox business and the sale of as many as five studios. Microsoft’s shares were up about 1% on Monday, after gaining around 10% this year. The company was scheduled to report quarterly results on Wednesday.