Microsoft Offers Buyouts to 60,000 Workers as AI Spending Surges

• by Shimanta Das
• October 28, 2026

Microsoft has offered voluntary buyouts to approximately 60,000 employees, representing about 27% of its global workforce, as the software giant ramps up spending on artificial intelligence. The offer was extended to eligible employees in Canada, India, the United Kingdom, and the United States, according to Chief People Officer Amy Coleman, who announced the move in a blog post on Monday. The buyouts are part of an effort to reduce costs amid the rising use of AI, which is reshaping tech companies and the broader workforce.

This is not the first workforce reduction Microsoft has made this year. In April, the company offered voluntary retirement to about 7% of its U.S. workforce, which at the time consisted of roughly 125,000 employees. The latest buyout program is significantly larger in scale, affecting more than a quarter of Microsoft’s global staff. The company has been investing heavily in AI infrastructure, including its Copilot assistant and other AI-driven products, and the buyouts are seen as a way to streamline operations and reallocate resources toward these priorities.

While Microsoft has not explicitly stated that AI will replace the workers taking buyouts, the move highlights the growing impact of automation on the tech industry. Whether or not that AI infrastructure will adequately replace human labor remains to be seen. The buyouts are voluntary, meaning employees can choose whether to accept the offer, but the sheer number of eligible workers suggests Microsoft is preparing for a significant shift in its workforce composition.

The buyout program is the latest example of how AI is reshaping tech companies and the greater workforce. As Microsoft continues to pour money into AI research and development, other tech firms are likely to follow suit, potentially leading to more buyouts and restructuring across the sector. For now, Microsoft’s offer provides an exit path for employees who may be uncertain about their future at the company, while allowing the firm to reduce costs and focus on its AI ambitions.