Microsoft offers buyouts to around 60,000 employees to contain costs

Microsoft said on Monday it is offering voluntary buyouts to about 60,000 employees, or more than a quarter of its global workforce, as the technology giant looks to contain costs and help fund its massive AI investments. Staffers across the Windows maker would be eligible for the offers, including those working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, a source familiar with the matter told Reuters, requesting anonymity as the matter was private. Units such as marketing, commercial business and security will be excluded, the source added. "This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs," Chief People Officer Amy Coleman said in a staff memo. A drone view of the Microsoft campus in Redmond, Washington, US, October 26, 2026. (Reuters) Like other tech giants, Microsoft is spending hundreds of billions of dollars on AI data centers and chips, drawing scrutiny from investors over whether the returns will justify the staggering cost. The company, slated to report first-quarter results after markets close on Wednesday, has forecast $175 billion in capital expenditures for the 2026 calendar year. Microsoft had 223,000 full-time employees globally as of June 30, 2026, according to its annual filing. Shares of Microsoft, which had risen about 10% this year, were up about 1% on Monday. The development was first reported by Business Insider. The company earlier this year offered voluntary buyouts to about 7% of its US workforce, or about 9,000 employees. In July, Microsoft announced it would cut 4,800 jobs, or about 2.1% of its global workforce, overhauling its Xbox gaming business and divesting up to five studios as it looks to boost returns after years of heavy investment in the division. "This offer will be available to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below," Microsoft said on Monday. The company said it was a time-limited, voluntary program and built on insights gained from a previous voluntary retirement program. The eligible employees will receive details within the next few hours, it added.