Microsoft has offered about 60,000 employees the chance to leave voluntarily, to cut costs and keep up its investment in artificial intelligence (AI). Eligible staff in several divisions may take up the offer. If it goes ahead, a large part of the company’s workforce will be covered by it.
Reuters reported the move on Monday (26 October). According to the report, Microsoft is taking the step to control operating costs and to fund large investments in AI infrastructure and technology. Like the world’s other leading technology companies, it is spending heavily on developing and expanding AI.
A source familiar with the matter told Reuters that staff in Microsoft’s AI Experiences, Copilot, finance, human resources, Xbox and Windows + Devices divisions may be eligible for the voluntary exit offer. Staff in marketing, commercial operations and security will not be covered. In a message to employees, Microsoft’s chief people officer Amy Coleman said the offer would help those thinking of doing something new outside the company to take the next step in their careers. At the same time, the company’s divisions would be able to adjust their headcount to changing needs.
Heavy spending on AI
Microsoft has forecast capital spending of $175 billion this year, much of it tied to AI infrastructure and technology. Microsoft and the other big technology companies have lately been investing huge sums in data centres and advanced chips. But investors are worried about whether these investments will bring an adequate financial return.
Microsoft is due to publish its results for the first quarter of the financial year after the market closes on Wednesday (28 October). Its new cost-control move has caught the attention of technology investors ahead of that. According to Microsoft’s annual report, it had 223,000 full-time employees worldwide as of 30 June 2026. On that count, the offer to about 60,000 staff could affect a significant share of the workforce.
Earlier cuts
Earlier this year, Microsoft offered voluntary exits to about 9,000 employees in the United States, about 7 percent of its staff there. In July it also announced about 4,800 job cuts worldwide. At the time it moved to restructure its Xbox gaming business. After years of heavy investment in that division, the company said it planned to pull investment from, or sell, up to five game studios to raise profits.
Microsoft said eligible employees at level 70 or below in certain divisions in Canada, India, the United Kingdom and the United States will be able to take up the new voluntary programme. It will run for a set period, and eligible staff will be given details.
The company said the new offer builds on its experience of an earlier voluntary retirement programme.
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