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Following billions in artificial intelligence investments last fiscal year, Microsoft announced that it is offering voluntary exit packages to roughly 60,000 employees, which represents about a quarter of its workforce, as reported to CNBC by a person familiar with the matter. The buyout offer is available to staff members at experience level 70 or below located in the United States, Canada, India, and the United Kingdom.
Workforce Transition and Affected Teams
Microsoft stated that the measure is designed to give eligible employees who may be considering a future outside the company a new choice to make that transition now with support. The company did not disclose how many buyouts it intends to accept, though the accepted figure is expected to be lower than the total number of offers extended, and it did not immediately respond to a request for comment from CNET.
The restructuring impacts various departments, including Xbox, Windows, Copilot, and finance, while exempting specific data center, sales, and marketing personnel, according to Bloomberg reports. The Xbox division previously eliminated 1,600 jobs in July during a previous round of reductions, with another round anticipated prior to June 2027.
Shifting Investments Toward Infrastructure
The voluntary departures arrive a few months after Microsoft disclosed spending approximately $116 billion on property and equipment during the 2026 fiscal year—primarily dedicated to cloud and artificial intelligence data center capacity—marking an increase of roughly $50 billion compared to the 2025 fiscal year. During this same timeframe, the corporation’s operating income grew by about $30 billion.
Furthermore, Bloomberg reported that the tech giant plans to triple its computing capacity in the upcoming years, a development that could lead to energy consumption exceeding the peak-hour usage of all of New York City. These voluntary exit offers demonstrate that the company is placing higher priority on infrastructure development, automation, and capital efficiency rather than expanding its headcount.
Broader Economic Impacts of Artificial Intelligence
Data from Stanford HAI’s Digital Economy Lab indicates that employment in artificial intelligence-exposed positions, such as software engineering and customer experience, has decreased by more than 4% this year, while positions dependent on artificial intelligence automation exhibit reduced employment growth rates. Although the technology may not yet be replacing jobs on a massive scale, corporations are funneling billions of dollars into computing power while exercising significantly greater selectivity in hiring personnel.
Microsoft has not yet announced a final deadline for employees to accept the voluntary exit transition offer.
