Microsoft offers voluntary buyouts to 60k employees across India, US, UK and Canada amid AI spending

According to a Reuters report published on October 26, the time-limited programme could cover more than a quarter of Microsoft’s global workforce. The company said the offer would be available to eligible employees at level 70 and below in participating teams across the four countries.

Eligible employees were expected to receive details of the scheme within hours of its announcement. The initiative will allow participating staff to leave the company voluntarily with financial and transition support.

A source familiar with the matter told Reuters that the programme would extend to several divisions, including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices. Marketing, commercial business and security teams will not be included.

Microsoft seeks to manage costs amid AI expansion

The buyout programme comes as Microsoft and other major technology companies commit hundreds of billions of dollars to AI infrastructure, including data centres and advanced chips. The scale of this spending has raised questions among investors about whether future revenues will justify the substantial investment.

Microsoft has projected capital expenditure of $175 billion for the 2026 calendar year. The company’s upcoming quarterly earnings report is expected to draw attention to how its AI investments are translating into business growth and financial returns.

In an internal staff memo, Chief People Officer Amy Coleman said the programme was designed to provide eligible employees considering opportunities outside the company with an option to make the transition with support. She added that it would also help participating teams adjust their workforces to changing business requirements.

Microsoft described the initiative as a voluntary, time-bound offer that builds on lessons from an earlier voluntary retirement programme.

According to the company’s annual filing, Microsoft employed 223,000 full-time workers worldwide as of June 30, 2026.

Previous buyouts and job cuts

The latest initiative follows an earlier voluntary buyout programme announced by Microsoft in the United States this year, which covered approximately 7% of its US workforce, or around 9,000 employees.

In July, the company also announced plans to cut 4,800 jobs as part of a restructuring of its Xbox gaming business. The changes included plans to divest up to five studios, with the broader effort aimed at improving returns from the gaming division after years of substantial investment.

The latest offer signals another effort to reshape Microsoft’s workforce while maintaining significant spending on AI development and infrastructure.

Microsoft shares gain ahead of earnings

Microsoft shares rose around 1% on Monday following news of the buyout programme, according to the report. The stock had gained approximately 10% during the year up to that point.

Business Insider was the first to report the latest buyout offer, Reuters said.

Investors will closely monitor Microsoft’s quarterly results, scheduled for release after the US market closes on Wednesday, for signs of whether its substantial AI spending is generating sustainable growth and returns.