Microsoft offers buyouts to around 60,000 employees to contain costs

Key Points:

• Microsoft is offering a new voluntary buyout program to eligible employees across various divisions including AI, Copilot, finance, HR, Xbox, and Windows + Devices, excluding marketing, commercial business, and security teams.
• The program aims to support employees considering leaving the company while helping Microsoft adapt its workforce to changing business needs, according to Chief People Officer Amy Coleman.
• This move follows previous workforce reductions, including a 7% voluntary buyout of US staff earlier this year and a 2.1% global workforce cut announced in July, focused on restructuring the Xbox division.
• Microsoft plans to spend $175 billion on capital expenditures in 2026, primarily on AI data centers and chips, amid investor scrutiny over the high costs and expected returns.
• The voluntary buyout offer is available to employees at level 70 and below in the US, Canada, India, and the UK, with details being communicated imminently.