Microsoft offers voluntary buyouts to about 60,000 employees

SAN FRANCISCO · Microsoft is offering voluntary buyouts to about 60,000 employees, roughly a quarter of its global workforce, as the tech giant seeks to manage costs while pouring billions into artificial intelligence infrastructure. The company announced the limited-time program on Monday, extending it to eligible staff in the United States, Canada, India and the United Kingdom at the vice-president level and below. A Microsoft spokesperson confirmed the offer reflects how the company is building more flexible workforce approaches rather than a one-size-fits-all model. The move comes as Microsoft is scheduled to report its quarterly earnings later this week.

The offer applies to staff on select teams, while some groups, including marketing, sales and some engineering teams, are excluded. According to a source familiar with the matter, units such as commercial business and security will also be excluded. Staffers across the company, including those working in AI experiences, Copilot, finance, human resources, Xbox and Windows and Devices, would be eligible. The company declined to share how many Canadian employees were offered the packages. In a memo to employees, Microsoft's executive vice president and chief people officer, Amy Coleman, said the program builds on insights from a previous voluntary retirement offering. "The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," Coleman wrote. She added that the offer gives eligible employees considering a future outside the company a new choice to make that transition with support.

This is the second voluntary buyout offer Microsoft has made this year. In April, the company offered a voluntary retirement program to about seven percent of its U.S. workforce, or roughly 9,000 employees. Microsoft said in July that more than 30 percent of those eligible took that offer. A company spokesperson said Microsoft does not expect anywhere close to that percentage to take the new voluntary exit offer, noting similar initiatives at other companies saw closer to five or six percent of employees leave. The company had 223,000 employees globally at the end of June, down from 228,000 at the end of 2025, according to regulatory filings. In July, Microsoft also announced it would cut 4,800 jobs, largely targeting its Xbox gaming division, as part of an overhaul. The latest voluntary program is part of a broader effort to adapt the workforce amid a major business transformation focused on AI.

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Microsoft, along with other tech giants like Amazon, Alphabet and Meta, is spending heavily on AI data centres, chips and computing infrastructure. The companies are collectively on track to pour roughly $700 billion US into such investments this year alone. Microsoft has forecast $175 billion in capital expenditures for the 2026 calendar year, down from a previous forecast of $190 billion. In July, the company said it spent $41 billion between April and June and expected to increase spending to $50 billion between July and September. Around two-thirds of Microsoft's spending goes toward short-lived assets, specifically chips, due to customer demand for both AI and non-AI infrastructure, chief financial officer Amy Hood said during a recent call with analysts. The massive investments have drawn scrutiny from investors over whether the returns will justify the cost. Microsoft reported $19.64 billion in positive free cash flow for its second quarter, though that was down 23 percent year over year.

Employees eligible for the new voluntary exit offer will receive details by email and must decide whether to take it in early December. Those who participate will leave the company on Dec. 31. The company said it does not have a specific target for how many employees it hopes will accept the offer.

With files from BNN Bloomberg, CBC News and CNBC