Microsoft buyouts affect 27% of staff as AI costs hit $175 billion

Microsoft is extending voluntary exit packages to approximately 60,000 employees, a move that impacts roughly one-quarter of its global workforce. The company announced the program on Monday, making the offers available to qualified staff in the United States, Canada, India, and the United Kingdom. To qualify, employees must hold a position at the vice president level or below.

The timing of the buyouts coincides with a major financial commitment to artificial intelligence. Chief Financial Officer Amy Hood stated in a July earnings call that Microsoft expects to spend $175 billion on AI infrastructure in 2026. This budget includes heavy investment in data centers. By offering these exits, the company aims to reduce labor costs while redirecting capital toward its AI initiatives.

Amy Coleman, Microsoft's chief people officer, addressed the staff in an internal memo. She described the offer as a choice for those considering leaving the company. Coleman noted that the package provides financial support and career-planning resources to facilitate the transition.

This is not the first time Microsoft has offered buyouts this year. In May, the company planned to offer exits to about 8,750 U.S. employees, representing 7% of its domestic workforce, according to the Associated Press. Later in July, Microsoft cut 4,800 jobs, or about 2% of its global staff, with many reductions occurring in its business division.

Regulatory filings show a gradual decline in total headcount. Microsoft employed 223,000 people globally at the end of June, down from 228,000 at the end of 2025. According to Agence France-Presse, 27% of the current workforce is eligible for the new offer. The company is limiting the window for acceptance to a short period.

Not all mid-level workers qualify for the buyout. Bloomberg reported that employees in specific units, including those focused on data centers and sales and marketing, are ineligible. The company confirmed these exclusions through a spokesperson. Eligible employees received an email notification on Monday detailing the terms of the offer.