Microsoft Announces Voluntary Buyouts for 60,000 Employees Amid AI Investment Surge

Microsoft has unveiled a voluntary buyout program targeting approximately 60,000 employees, which constitutes more than 27% of its global workforce. This initiative is part of the company's ongoing restructuring efforts aimed at controlling costs while significantly increasing investments in artificial intelligence (AI) infrastructure.

The announcement, made on October 26, 2026, outlines that the buyout offer is available to eligible employees at internal level 70 and below across various regions, including the US, Canada, India, and the UK. Key divisions affected by this program include AI Experiences, Copilot, finance, human resources, Xbox, and Windows + Devices, while teams in marketing, commercial business, and security are excluded.

According to Chief People Officer Amy Coleman, the program is designed to provide employees with financial support and career planning resources as they transition out of the company. Eligible employees will receive severance packages based on their tenure and level, which include continued stock vesting and limited healthcare coverage.

Employees have until early December to decide whether to participate, with the exit date set for December 31, 2026. This buyout program follows a series of workforce reductions and restructuring initiatives at Microsoft, including a previous voluntary retirement program that targeted around 9,000 employees earlier this year.

The move comes as Microsoft ramps up its capital expenditures, projected to reach $175 billion in 2026, largely to support its AI infrastructure development. The company aims to streamline operations while maintaining a focus on its growing AI services.