Microsoft offers buyouts to 60,000 employees as AI spending rises

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Microsoft is offering voluntary buyouts to around 60,000 employees, or approximately 27% of its global workforce, as the technology giant continues to invest heavily in artificial intelligence.

The offer is available to eligible employees in Canada, India, the United Kingdom and the United States, Chief People Officer Amy Coleman said in a blog post on Monday.

“The Voluntary Exit Offer is new for us,” Coleman wrote, adding that the company would learn from the programme while helping employees develop new skills and explore other opportunities within Microsoft where appropriate.

Microsoft had approximately 223,000 full-time employees at the end of June.

Buyouts follow previous job cuts

The voluntary exit programme comes after a series of workforce reductions at the company.

In May, Microsoft planned to offer buyouts to around 8,750 employees, equivalent to 7% of its US workforce, according to two people familiar with the plan who were not authorised to speak publicly.

In July, the company announced 4,800 job cuts, representing about 2.1% of its global workforce. The reductions included a significant number of positions in its Xbox video game business.

Microsoft is due to publish its quarterly financial results on Wednesday.

AI investment reshapes the technology sector

The buyout offer comes as Microsoft expands its artificial intelligence capabilities and the technology industry directs enormous sums towards AI infrastructure.

Investment in data centres to support AI is expected to exceed $700 billion globally this year, according to the Associated Press. The spending surge has increased demand for memory chips, processors and other equipment, while also adding pressure to electricity costs.

Economists expect these investment pressures to contribute to inflation at least through the end of the year.

Microsoft has been expanding its AI offerings for several years. In 2024, it introduced a new category of AI-enabled personal computers built around Copilot, its AI assistant integrated into the Windows operating system.

The company also introduced Mico, an AI character designed to represent Copilot, in October 2025.

Microsoft’s latest move highlights how the industry’s push to expand AI capabilities is coinciding with efforts to reshape workforces and manage costs.


Also read: Anthropic IPO filing warns of potentially catastrophic risks from AI
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