Microsoft Extends Buyout Offers to 60,000 Staff

Microsoft announced on Monday that it is offering voluntary separation packages to approximately 60,000 employees. The move aims to control expenses while funding substantial investments in artificial intelligence. The offer represents more than a quarter of the company's global workforce.

The buyout program is open to staff in Canada, India, the United Kingdom, and the United States. Eligible units include teams focused on AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices. Marketing, commercial business, and security departments are not part of the initial offer.

Amy Coleman, the company's executive vice-president and chief people officer, described the initiative as a new choice for staff considering a move away from the firm. She noted in a staff memo that the program provides organizations with another method to adjust their workforce to shifting requirements.

Microsoft stated the program is time-limited and voluntary. The structure is based on insights from a previous voluntary retirement initiative. Eligible employees will receive specific details within a few hours of the announcement.

The company has not disclosed how many Canadian employees are included in the offer. Microsoft holds 223,000 full-time employees globally as of June 30, according to its annual filing. A source familiar with the matter, who requested anonymity because the details are private, confirmed the scope of the eligible departments.

Investors have questioned whether the returns from Microsoft's AI spending justify the costs. The company projects $175 billion in capital expenditures for the 2026 calendar year. It will report first-quarter results after markets close on Wednesday. Shares of Microsoft rose about 1 percent on Monday after gaining roughly 10 percent earlier in the year.

This follows a July announcement where Microsoft cut 4,800 jobs to overhaul its Xbox gaming business. The company also planned to divest up to five studios. Earlier in the year, it offered buyouts to about 7 percent of its U.S. workforce, or 9,000 employees.