Microsoft is offering buyouts to about 60,000 employees, or about 27% of its workforce, as the software giant continues to spend heavily on artificial intelligence.
In a memo to employees Monday, Chief Human Resources Officer Amy Coleman outlined the new program, noting that eligible employees include senior executives, all the way up to vice presidents.
“This offer gives eligible employees who are considering a future outside of the company a new choice to make that transition now with support,” Coleman wrote to employees in a memo published by Microsoft on its blog. Microsoft employed around 223,000 people at the end of June, down 5,000 from the same period in 2025.
Microsoft has cut its workforce to cut costs while investing billions to build AI data centers. In April, the company offered a similar voluntary buyout program to longtime employees, the first time such an arrangement has been made. At the time, Coleman emphasized that Microsoft was looking to move faster and simplify its operations.
Employees who accept the latest buyout will receive severance packages based on their length of service with the company. The specific terms will vary depending on different countries’ labor laws, but will be consistent with standard separation formulas, a Microsoft spokesperson said. Fortune. In the United States, this means a minimum of eight weeks’ pay, with continued stock vesting, health care, and career services. To be eligible, employees in the US, UK, Canada and India must opt in by the first week of December, and those who participate leave on December 31.
Chief executive Satya Nadella has made several management changes amid a wave of executive departures. As Nadella seeks to capture the enterprise and cloud AI markets, Microsoft’s workplace culture and leadership structure have changed. Ryan Roslansky, an executive vice president who also served as CEO of LinkedIn, recently announced his departure, as did Frank X. Shaw, director of communications. Earlier this year, other long-time executives, including gaming chief Phil Spencer and Rajesh Jha, executive vice president of experiences and devices, retired.
Other tech giants have also reduced their workforces in response to rising spending. In June, Google offered buyouts to some employees. Amazon has also cut jobs in divisions such as its Stores unit after laying off around 30,000 workers between late 2025 and early this year.
When asked how many employees Microsoft plans to accept buyouts, the spokesperson cited other large tech companies that have implemented similar programs and seen 3 to 5 percent adoption.
Microsoft remains one of the tech industry’s top spenders on data centers. In its latest quarterly report, the company noted $41 billion in capital spending for the quarter ending in June, while forecasting $145.3 billion in total spending for its 2026 fiscal year.
In July, Microsoft cut about 4,800 jobs, following more than 15,000 layoffs in 2025. Most of the recent cuts have centered on its struggling Xbox unit, which has weighed on its overall financial performance.
Microsoft is expected to report its first quarter results on Wednesday. Its shares are up about 25% over the past six months.
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