Microsoft Targets 60,000 Employees in Massive Voluntary Buyout Pivot
AI-generated image · Bay Street Wire
The software giant is offering buyouts to over a quarter of its workforce to contain costs and fuel a $175 billion AI spending spree.
Microsoft is offering voluntary buyouts to approximately 60,000 employees, according to reporting from CBC and The Verge. The move targets more than a quarter of the company's global workforce, which stood at 223,000 full-time employees as of June 30.
According to CBC, the company is utilizing these buyouts to contain costs and help fund its massive investments in artificial intelligence. This strategic shift comes as Microsoft forecasts $175 billion USD in capital expenditures for the 2026 calendar year to support AI chips and data centers.
In a staff memo, Chief People Officer Amy Coleman stated the offer provides a way for employees to transition out of the company with support while allowing the organization to adapt its workforce to changing needs. The offer is available to eligible staff in the United States, Canada, the United Kingdom, and India.
Sources familiar with the matter told Reuters and The Verge that the buyouts extend to employees in finance, human resources, Xbox, Windows + Devices, Copilot, and AI experiences. Some participation is also occurring within corporate, external, and legal affairs, as well as MicrosoftAI and cloud + AI teams. However, the sources noted that security, marketing, and commercial business units are excluded.
This initiative follows a series of workforce reductions. CBC reports that Microsoft previously cut 4,800 jobs in July to overhaul its Xbox division and commercial sales teams, and earlier this year offered voluntary buyouts to roughly 9,000 U.S. employees. Additionally, The Verge reports that Xbox CEO Asha Sharma is planning further rounds of layoffs, according to a report from Fortune.