Microsoft offers voluntary buyouts to 60,000 staff as AI spending surges

Microsoft is offering voluntary buyouts to eligible employees across India, the United States, the United Kingdom and Canada as the technology giant seeks to manage workforce costs while pouring billions of dollars into artificial intelligence.

The time-limited programme could cover around 60,000 employees, according to a Reuters report, marking a significant workforce initiative as Microsoft expands its AI infrastructure and capabilities.

The offer is open to eligible employees at level 70 and below in participating teams across the four countries. Microsoft said employees would receive details of the programme within hours of its announcement, giving eligible staff the option to leave the company voluntarily with financial support.

Several divisions are expected to be covered, including AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices, a source familiar with the matter told Reuters on condition of anonymity. Marketing, commercial business and security teams will be excluded.

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 prompted investors to question whether the anticipated returns will justify the enormous investments.

Microsoft has forecast capital expenditure of $175 billion for the 2026 calendar year. Its upcoming quarterly results are expected to draw close attention as investors assess whether the company's AI investments are translating into stronger business growth and sustainable returns.

Who is eligible for the buyouts?

The voluntary exit programme is available to eligible employees at level 70 and below in participating teams in India, the US, the UK and Canada. Not all employees or business units are covered, with marketing, commercial business and security teams excluded.

Microsoft shares gain

Microsoft shares, which had risen around 10% this year, gained about 1% on Monday following news of the buyout offer.

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

The announcement comes ahead of Microsoft's quarterly earnings report, which investors will examine for clues about the financial impact of its expanding AI operations and the returns from its substantial infrastructure spending.