Microsoft puts 60,000 jobs at risk worldwide as tech giant focuses on AI

By the Editorial Team · Tuesday, October 27, 2026

Microsoft is offering voluntary buyouts to about 60,000 employees worldwide as part of a strategy to cut costs and reallocate resources toward AI development. This large-scale reduction, which excludes certain divisions and follows prior job cuts, reflects the company's focus on balancing workforce adjustments with significant investments—estimated at $175 billion in 2026—aimed at expanding its AI and cloud computing capabilities.

Microsoft announced on Monday that it is offering voluntary buyouts to approximately 60,000 employees, representing more than a quarter of its global workforce of around 223,000, as part of a broader effort to reduce costs while increasing investment in artificial intelligence (AI). The voluntary redundancy program affects staff at vice-president level and below in countries including the United States, Canada, India, and the United Kingdom, where the company employs roughly 6,000 people.

Eligible employees come from divisions such as AI experiences, Microsoft Copilot, finance, human resources, Xbox, and Windows + Devices, while certain units like marketing, commercial business, security, data centers, sales, cybersecurity, and quantum computing are excluded from the program. Amy Coleman, Microsoft’s chief people officer, described the initiative in a staff memo as a time-limited voluntary program aimed at providing employees considering a future outside the company with financial support, while allowing departments to adjust their workforce according to changing business needs.

This marks the second voluntary buyout offer from Microsoft this year. In April, the company offered early retirement packages to about 8,600 long-tenured U.S. employees, with nearly 30 percent accepting those terms. In July, Microsoft also announced 4,800 job cuts, mainly within its Xbox gaming division, as part of a business overhaul. Despite the workforce reductions, Microsoft’s overall headcount has only declined slightly from about 228,000 employees in previous years to 223,000 as of June 30, 2026.

The move follows a wider trend in the technology sector, with major companies including Meta, Amazon, eBay, Uber, and Netflix also announcing significant layoffs or voluntary exit offers this year. These actions come amid substantial capital expenditures on AI-related infrastructure—such as data centers and semiconductor chips—across the industry. Microsoft alone is expected to invest approximately $175 billion in capital expenditures in 2026, targeting growth in AI capabilities and cloud computing.

While Microsoft has seen revenue rise 18 percent to $332 billion and profits increase 31 percent to $134 billion in its most recent fiscal year, investor scrutiny persists regarding whether the scale of AI investments will yield sufficient returns. Microsoft’s AI-powered assistant, Copilot, has gained over 30 million paid users, though it remains behind some competitors in market adoption.

The deadline for employees to decide on the voluntary buyout varies by region, with the anticipated last date to leave by the end of December. Microsoft has not clarified whether layoffs will follow if insufficient employees accept the buyout offering. Coleman emphasized that the company is pursuing “different ways to meet business needs” while creating opportunities for employees to "grow and contribute."

The company is scheduled to release its quarterly earnings report later this week.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.