Microsoft announced Monday that it is offering voluntary buyout packages to roughly 60,000 employees, representing more than a quarter of its global workforce, as the tech giant redirects resources toward building out artificial intelligence infrastructure.
The voluntary separation plan was outlined in a company memo sent by Chief People Officer Amy Coleman to employees across the United States, Canada, India and the United Kingdom. Coleman wrote that the initiative provides staff contemplating a career change an opportunity to exit with financial assistance. Microsoft employed approximately 223,000 people at the end of June, down 5,000 workers from the previous year, Fortune reported.
Severance terms and eligibility
Eligible employees span internal seniority tiers from entry-level positions up to level 70, which includes vice presidents, according to internal documents reviewed by Business Insider. The buyout offers are directed at select units, including Windows, Xbox, Copilot and finance, Bloomberg reported, while excluding certain data center, marketing and sales personnel.
Package values depend on geography, job level and years of service, adhering to Microsoft’s standard severance benchmarks. In the U.S., departing workers will receive at least eight weeks of salary, along with continued healthcare coverage, career placement assistance and ongoing stock vesting, Fortune reported. According to Business Insider, employees at level 64 and below qualify for one week of base pay per six months of employment, while those at levels 65 through 67 are offered two weeks of pay per six months, capped at 39 weeks. Senior employees at level 68 are eligible for 12 months of salary.
A company spokesperson told Fortune that employees in participating nations must accept the buyout by the first week of December, with an official exit date set for Dec. 31. The New York Post reported that employees have until Dec. 31 to make their final decision. A Microsoft representative indicated the company does not plan to launch another buyout round in the near term.
Mounting capital costs and executive turnover
The sweeping buyout proposal comes as Microsoft commits massive sums of capital toward computing power and cloud facilities to fuel its artificial intelligence expansion. CNET reported that Microsoft spent about $116 billion on property and equipment during its 2026 fiscal year, up roughly $50 billion from the prior fiscal year.
In its quarter ending in June, Microsoft recorded $41 billion in capital expenditures, projecting total capital spending of $145.3 billion for the 2026 fiscal year, according to Fortune. To help offset these escalating infrastructure expenses, the company has trimmed personnel throughout the year, cutting about 4,800 jobs in July, with many reductions falling on its Xbox gaming division.
The workforce shifts coincide with substantial leadership departures under Chief Executive Satya Nadella. In recent months, LinkedIn Chief Executive Ryan Roslansky and Chief Communications Officer Frank X. Shaw announced plans to leave, following the earlier retirements of gaming head Phil Spencer and experiences division leader Rajesh Jha, Fortune reported.
Microsoft did not state exactly how many buyouts it intends to approve. However, a company spokesperson pointed to similar buyout programs across the tech sector that typically saw acceptance rates between 3 percent and 5 percent. Microsoft is scheduled to release its first-quarter financial results on Wednesday.
