Microsoft Offers Buyouts to 60,000 Employees as AI Spending Climbs

The offer is open to employees at level 70 and below on Microsoft's internal career scale, in participating teams across the United States, Canada, India and the United Kingdom. Level 70 reaches general managers and some employees with vice president titles, but not corporate vice presidents.

Not every team is taking part. Microsoft says participation depends on each business's priorities, customer commitments and staffing needs. Bloomberg reports that Xbox, Windows, Copilot and Finance are participating, while employees focused on data centers, sales and marketing are excluded.

The Terms

• Pay: Terms are similar to Microsoft's standard severance package.

• Support: Participants also receive career planning resources.

• Deadline: Eligible employees must decide by early December.

• Exit date: Those who accept will leave the company on December 31.

Eligible employees were to receive an email Monday with a link to their individual offer details.

Microsoft's Reasoning

Coleman framed the program as giving employees who may already be thinking about leaving a supported way to do it now, while giving participating organizations another tool to adapt their workforce. She called the offer "new for us" and said it builds on lessons from the Voluntary Retirement Program Microsoft ran earlier this year.

Why Now

The buyouts come as Microsoft pours money into AI infrastructure, primarily data center construction, with spending this year projected in the range of $175 billion to nearly $190 billion depending on the estimate. That investment has put pressure on the company to control costs elsewhere.

The voluntary approach also lets Microsoft shrink headcount without another round of forced layoffs. The company cut about 15,000 jobs in 2025 and another 4,800 in July of this year. Its headcount fell from 228,000 at the end of 2025 to 223,000 at the end of June.

Second Voluntary Program This Year

This spring, Microsoft offered its first-ever Voluntary Retirement Program to a narrower group: U.S. employees at senior director level and below whose age and years of service met a set threshold. About 30% of those eligible accepted. Microsoft reportedly expects a lower take rate for the new exit offer.

What We Don't Know Yet

The 60,000 figure counts employees who are eligible, not employees who will leave. Microsoft has not shared a target number of departures, and it hasn't said whether layoffs could follow if too few people accept. This is a developing story.

Sources

• Forbes

• CNBC

• TechCrunch

• Axios Seattle

• The Next Web