Microsoft extends buyout to 60,000 staff

Microsoft announced on Monday that it is extending voluntary separation offers to approximately 60,000 employees. The company stated that this move aims to manage costs while allocating more resources toward its expanding artificial intelligence initiatives.

The offer applies to staff in the United States, Canada, India, and the United Kingdom. According to Microsoft's annual filing, the company employed 223,000 full-time workers globally as of June 30. This means the buyout package reaches more than a quarter of the global workforce. A source familiar with the matter told Reuters that the offer covers teams in AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices. Marketing, commercial business, and security units are excluded from the program.

Amy Coleman, Microsoft's executive vice-president and chief people officer, outlined the details in an internal memo. She described the program as a time-limited, voluntary option for eligible workers. Coleman noted that the structure draws from insights gained during a previous voluntary retirement program. Employees eligible for the offer will receive specific details within hours of the announcement. Microsoft declined to specify how many Canadian staff members are included in the group.

The financial pressure on the company stems from massive investments in AI data centers and chips. Investors have raised questions about whether the returns will offset these high expenses. Microsoft projects $175 billion US in capital expenditures for the 2026 calendar year. The company is scheduled to report first-quarter financial results after market close on Wednesday.

Microsoft has taken similar steps earlier this year. In the first half of 2026, the company offered voluntary buyouts to about 7 percent of its U.S. workforce, affecting roughly 9,000 employees. In July, Microsoft announced a reduction of 4,800 jobs, or 2.1 percent of its global staff, as part of a restructuring of its Xbox gaming business. That move included plans to divest up to five studios to improve returns after years of heavy investment.

Microsoft shares, which had risen about 10 percent earlier in the year, climbed about 1 percent on Monday. Business Insider first reported the development.