Microsoft Offers Buyouts to 60K Workers Amid AI Push

Microsoft is offering voluntary buyouts to 60,000 employees—roughly 27% of its global workforce—across the U.S., Canada, the U.K., and India, according to multiple reports ^[1]. The move, which targets employees at the vice president level or below, is part of a broader restructuring aimed at reducing costs and reallocating resources toward AI infrastructure ^[3]. The company said the offer is available for a limited time, with employees required to decide by December 31 ^[2].

This is the second major workforce reduction Microsoft has launched this year. In April, the company offered voluntary retirement to about 7% of its U.S. workforce, which at the time totaled around 125,000 employees ^[1]. Earlier in 2026, Microsoft also cut 4,800 jobs, including a significant number from its Xbox division ^[4].

Eligible employees will receive financial support and career planning resources to help with the transition. The company emphasized that the program is voluntary and designed to help workers leave with dignity while allowing Microsoft to adapt to changing business needs ^[3]. However, some divisions—including data centers, sales, and marketing—are excluded from the offer ^[2].

Microsoft’s push into AI has been aggressive. The company reported an 18% revenue increase this summer, driven largely by its cloud services, including Azure and GitHub ^[2]. It has also secured $130 billion in new data center leases, with future leases expected to shift from finance to operating leases, leading to roughly $175 billion in capital expenditures.

Despite the scale of the cuts, the impact on productivity remains uncertain. A recent National Bureau of Economic Research working paper found that 90% of surveyed senior executives worldwide said AI had not yet improved productivity at their companies ^[1]. Even within Microsoft, leadership has expressed concerns—Ryan Roslansky recently criticized “AI slop” on social media.

The company’s earnings call is scheduled for Wednesday, with investors watching closely for signs of how these restructuring efforts are affecting performance ^[2]. The story was first reported by The Guardian and New York Post.