Microsoft has offered 60,000 employees, or about 27% of its global workforce, voluntary buyouts as the software giant spends heavily on artificial intelligence.

Chief People Officer Amy Coleman said in a blog post on Monday that the company's voluntary exit offer was available to eligible employees in Canada, India, the United Kingdom and the United States.

Who Is Eligible?

The offers extend to staff at vice president level and below in participating divisions, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices. Marketing, commercial business and security teams are excluded, according to a source familiar with the matter.

Some groups working on data centres, sales and marketing are also excluded. Coleman said: "This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support".

Why Is Microsoft Doing This Now?

Like other tech giants, Microsoft is spending hundreds of billions of dollars on AI data centres and chips, drawing scrutiny from investors over whether the returns will justify the staggering cost. The company has forecast $175bn in capital expenditures for the 2026 calendar year.

Microsoft had 223,000 full-time employees globally as of 30 June 2026, according to its annual filing — down from 228,000 at the end of 2025.

This is not Microsoft's first workforce move this year. In July, the company said it was cutting 4,800 jobs, about 2.1% of its global workforce, including a large number of workers at its Xbox video game business. Earlier, it offered buyouts to about 7% of its US workforce.

What Happens Next?

Crucially, this is a voluntary programme — not 60,000 immediate dismissals. How many people actually leave depends on take-up. When Microsoft offered a similar early-retirement option earlier this year, around 30% of those eligible accepted it.

Shares of Microsoft, which had risen about 10% this year, were up about 1% on Monday. The company is due to report quarterly results on Wednesday, when investors will look for clues on AI returns, cloud growth and further cost plans.

Frequently Asked Questions

Is Microsoft laying off 60,000 people? No — it is offering voluntary buyouts to 60,000 eligible staff. The final number who leave will be lower and depends on who accepts.

Which Microsoft teams are affected? Participating teams include AI experiences, Copilot, Xbox, Windows + Devices, finance and HR. Data centre, sales, marketing, commercial and security teams are largely excluded.

Why is Microsoft cutting staff while spending on AI? To fund massive AI infrastructure spending — $175bn in capital expenditure forecast for 2026 — while reshaping its workforce toward AI-focused roles.