Microsoft is offering voluntary exit packages to approximately 60,000 employees, roughly a quarter of its global workforce, as the technology giant seeks to control costs while pouring billions into artificial intelligence infrastructure, the company confirmed Monday.
The offer, described internally as a “Voluntary Exit Offer,” extends to eligible staff in the United States, Canada, India, and the United Kingdom at the vice president level and below, according to a company spokesperson. Employees working in certain divisions – including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices – are eligible, while teams in marketing, commercial business, security, and some data center roles are excluded.
This marks Microsoft’s second voluntary buyout program in 2026. In April, the company offered early retirement packages to approximately 9,000 U.S. employees – about 7 percent of its domestic workforce – with eligibility tied to a combination of age and years of service. Roughly 30 percent of those eligible accepted the offer, according to CNBC.
Amy Coleman, Microsoft’s executive vice president and chief people officer, framed the new offer as part of the company’s evolving approach to workforce management.
“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 said in a memo to employees.
She added that the program is new for the company and that Microsoft will “learn from it,” while continuing to help employees “focus on the work that matters most, build new skills and, where it makes sense, find new opportunities across Microsoft”.
The buyout offer comes as Microsoft, like its Big Tech peers, is directing unprecedented sums toward artificial intelligence infrastructure. The company has forecast $175 billion in capital expenditures for the 2026 calendar year, down from an earlier projection of $190 billion but still a staggering figure driven largely by AI data centers and specialized chips.
Microsoft had approximately 223,000 full-time employees globally as of June 30, down from 228,000 at the end of 2025, according to regulatory filings. The company also cut nearly 5,000 jobs in July, heavily targeting its Xbox gaming division.
The workforce reductions have not gone unnoticed by investors. Microsoft shares hit an all-time high this month, and the stock rose more than 1 percent following Monday’s announcement, closing at approximately $530 on Nasdaq.
Eligible employees were expected to receive details about the buyout packages via email Monday morning, with a limited window to decide whether to accept. The company has not disclosed the specific financial terms of the exit packages, though the April program reportedly offered between eight and 39 weeks of base pay depending on position and tenure.
Microsoft is scheduled to report its quarterly earnings later this week, when investors will be watching closely for updates on cloud growth and capital expenditure plans.
