Microsoft is offering voluntary exit packages to roughly 60,000 workers across several divisions as it increases spending on artificial intelligence.
Microsoft is offering voluntary buyouts to roughly 60,000 workers as it seeks to cut costs and reshape its workforce for artificial intelligence, according to reports by The Guardian and Engadget. The buyout program applies to more than a quarter of the technology company’s global workforce, which totals about 223,000 people worldwide.
Who is eligible for the buyout
The voluntary departure program is open to select workers at the vice president level and below. Bloomberg reported on Monday that several of Microsoft’s most prominent divisions will participate in the offer, including Windows, Xbox, and Copilot, the company’s AI tool.
Other departments are barred from taking part in the buyout program. Microsoft employees working in datacenters, cybersecurity, and marketing are not eligible for the packages.
For workers who qualify and choose to participate, the terms of the buyout resemble a standard Microsoft severance package, according to reporting by TechCrunch. In a statement, Amy Coleman, Microsoft’s executive vice-president and chief people officer, stated that the offer provides staff considering an exit “a new choice to make that transition now with support.” Coleman added that the plan gives participating units another way to adjust their personnel to shifting needs. Microsoft did not respond to a request for comment seeking additional details about the terms.
Billions in AI spending and previous cuts
The buyout offer follows a series of earlier workforce reductions at Microsoft throughout the year. The company’s Xbox division recently underwent thousands of layoffs, and other departments also had staff cut. In April, Microsoft announced voluntary retirement offers to about 7% of its US workforce, which consisted of approximately 125,000 employees at the time.
Because the latest offer is voluntary, it is not known how many employees will accept it. When Microsoft rolled out a similar voluntary departure offer earlier this year, only 30% of eligible employees signed on to leave.
The offer to cut positions comes alongside heavy spending on artificial intelligence infrastructure. Microsoft has set aside billions of dollars for data centers and AI hardware, with nearly $175 billion being spent in 2026 alone. To support that push, the company has opened nearly 90 hyperscale data centers this year.
Industry job reductions and productivity questions
Microsoft is one of several large technology companies reducing payroll while increasing investment in artificial intelligence. In April, Meta announced plans to trim 10% of its personnel, or about 8,000 employees, to boost efficiency. Amazon has made several rounds of workforce cuts, most recently in its retail division. In June, Oracle shed nearly 13% of its workforce, cutting 21,000 jobs as a result of AI.
At the same time, it is not clear whether reducing headcounts has produced higher efficiency. Some tech firms, including Meta, have scaled back their initial layoff plans. Within Microsoft, company leader Ryan Roslansky recently took to social media to complain about “AI slop” in the workforce.
Executive surveys indicate that productivity gains from AI remain limited across major corporations. A working paper published by the National Bureau of Economic Research surveyed 9,000 senior executives around the world. Of those surveyed, 90% said artificial intelligence had not yet resulted in greater productivity at their companies.
