Microsoft has offered voluntary buyouts to around 60,000 employees as the technology giant seeks to control costs while investing heavily in artificial intelligence (AI).

The offer covers selected employees in the United States, Canada, India and the United Kingdom at vice president level and below, a Microsoft spokesperson said. However, some groups, including certain employees working in data centres, sales and marketing, are excluded.

Amy Coleman, Microsoft’s executive vice president and chief people officer, explained the purpose of the programme in a memo to employees.

“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” Coleman said.

The programme marks Microsoft’s second voluntary buyout offer this year.

Microsoft Expands Workforce Reduction Measures

In April, Microsoft reportedly offered early retirement to around 7% of its US workforce. CNBC reported that approximately 30% of eligible employees accepted the offer.

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Microsoft employed 223,000 people worldwide at the end of June, compared with 228,000 at the end of 2025, according to regulatory filings cited in the report.

The latest offer could reach roughly 27% of the company’s workforce, although eligibility depends on employees’ roles, locations and other conditions.

Microsoft is also expected to release its quarterly earnings later this week.

Major Technology Companies Cut Jobs

Microsoft’s latest move comes as major technology companies increase AI spending and reassess their staffing needs. Industry leaders have also warned that AI adoption could lead to significant job losses.

Anthropic Chief Executive Officer Dario Amodei has warned about the potential impact of AI on employment.

Other technology companies have also announced workforce reductions.

Netflix reportedly plans to cut around 6% of its workforce, affecting approximately 1,000 jobs, according to US media reports.

E-commerce company eBay laid off 1,000 employees earlier this month. The cuts followed another round earlier in the year that affected 800 workers.

Meta cut around 10% of its global workforce in May, affecting approximately 8,000 employees. The company also cancelled plans to hire another 6,000 workers in April and moved 7,000 existing employees into AI-related workflow roles, according to the supplied report.

Ride-hailing company Uber announced plans in September to reduce its workforce by around 10%, affecting an estimated 3,000 or more employees.

Amazon also announced 16,000 global job cuts in January.

Microsoft previously eliminated nearly 5,000 positions in July, with significant reductions affecting its Xbox gaming division.

Big Tech Increases Investment in AI Infrastructure

The workforce reductions come as major technology companies pour money into AI infrastructure.

Amazon, Microsoft, Alphabet and Meta are collectively expected to invest roughly $700 billion in AI data centres, chips and computing infrastructure this year, according to the supplied report.

Microsoft said it spent $41 billion overall between April and June. The company also expected spending to reach $50 billion between July and September.

However, Microsoft reportedly lowered its forecast for total spending in calendar year 2026 to $175 billion, down from its previous projection of $190 billion.

Chief Financial Officer Amy Hood told analysts that around two-thirds of the company’s spending goes towards “short-lived assets”, particularly chips. She linked the investment to customer demand for both AI and non-AI infrastructure.

Microsoft’s latest voluntary buyout offer highlights the tension facing major technology companies as they balance workforce costs with the growing expense of developing and operating AI systems.