Microsoft extends $175 billion AI push with 60,000 voluntary buyouts

Microsoft is restructuring its workforce to fund a massive expansion in artificial intelligence. The company announced on Monday that it is offering voluntary buyouts to approximately 60,000 employees. This number represents roughly one-quarter of its global staff. The move coincides with a plan to spend $175 billion on AI infrastructure in 2026.

The offer is limited to specific regions and job levels. Eligible employees must work in the United States, Canada, India, or the United Kingdom. Only those at the vice president level or below can participate. The program excludes workers in certain business units, including data center operations and sales and marketing roles, according to a company spokesperson told by Bloomberg.

Amy Coleman, Microsoft’s chief people officer, sent a memo to staff on Monday. She described the offer as a way to help employees make a transition with support. Employees will receive an email notification about their eligibility later this week. The company frames the program as a choice for those considering leaving, providing financial padding and career-planning resources in exchange for a timely departure.

This is the second major workforce reduction at Microsoft this year. In May, the company planned buyouts for about 8,750 people, which equated to 7% of its U.S. workforce. Then, in July, Microsoft cut 4,800 jobs globally. That July reduction accounted for about 2% of its total staff. Regulatory filings show the company employed 223,000 people at the end of June, down from 228,000 at the end of 2025.

The financial driver for these changes is the company’s aggressive investment in AI. Chief Financial Officer Amy Hood stated in a July earnings call that Microsoft expects to spend $175 billion on AI infrastructure in 2026. This spending includes significant capital outlays for new data centers. By reducing labor costs through voluntary exits, the company aims to balance these heavy infrastructure investments.

Agence France-Presse calculated that around 27% of Microsoft’s workforce is eligible for the new buyout offer. The program is available for a limited period. Microsoft’s strategy shifts labor spending from permanent salaries to temporary severance payments, allowing the company to redirect funds toward its AI buildout while reducing headcount in specific operational areas.