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Microsoft Offers Voluntary Buyouts to 60,000 Employees as It Expands AI Investments

October 27, 2026
By
Riley Arden
Microsoft Offers Voluntary Buyouts to 60,000 Employees as It Expands AI Investments

Microsoft has announced voluntary buyout offers for around 60,000 employees as the technology giant reshapes its workforce to focus on artificial intelligence (AI).

The programme reportedly covers employees in the United States, Canada, India and the United Kingdom at level 70 and below on the company’s internal job-level scale. Some senior employees, including vice presidents, may also be eligible.

In a memo to employees, Microsoft Executive Vice President and Chief People Officer Amy Coleman said the programme would give workers more flexibility and allow them to decide their next career steps.

Employees reportedly have until early December to accept the offer, with those who participate expected to leave the company later that month.

According to reports, the severance package will depend on employees’ job levels and length of service. Eligible workers may receive one or two weeks of pay for every six months of service, along with stock vesting benefits, limited healthcare coverage and career transition support.

The move follows Microsoft’s first voluntary retirement programme, announced in May. The company is introducing the new offer as it reorganises its operations and increases spending on AI infrastructure.

Microsoft has been investing heavily in data centres, cloud computing and AI technology. The company has projected capital expenditure of around $190 billion for 2026, with a large portion expected to support its AI expansion.

The workforce changes come despite strong financial performance. Microsoft reported revenue of $90.01 billion for the quarter ended in June, an 18% increase compared with the same period last year.

The company has also expanded its data centre network to meet growing demand for cloud and AI services. In addition, Microsoft is developing its own chips to improve computing efficiency and reduce infrastructure costs.

The voluntary buyout programme is part of the company’s broader effort to adapt its workforce and spending priorities as AI becomes increasingly important to its business.

Investors will be watching Microsoft’s upcoming quarterly earnings report for further details on its capital expenditure plans and Azure cloud business growth.

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