Microsoft is preparing to offer buyouts to approximately 60,000 employees as part of a broader effort to manage costs amid the increasing integration of artificial intelligence (AI) within its operations, according to reports. This move marks the latest in a series of workforce adjustments the company has made throughout 2026.

Earlier this year, Microsoft initiated voluntary retirement offers to about 7% of its U.S.-based workforce, which totaled around 125,000 employees at the time. Globally, the company employs roughly 223,000 people. The recent buyout offer is expected to involve several of Microsoft’s key divisions, including Xbox, Windows, and Copilot—an AI-driven tool. However, employees in certain areas such as cybersecurity, datacenter operations, and marketing reportedly will not be eligible for the buyout.

Amy Coleman, Microsoft's executive vice president and chief people officer, characterized the buyout option as a supportive transition for employees considering a departure from the company, while also providing Microsoft with flexibility to adapt its workforce according to evolving business needs. Microsoft declined to provide further comments on the specifics of the offer.

The push to reduce personnel aligns with broader trends in the technology sector, as companies increasingly invest in AI but simultaneously face pressure to optimize efficiency. Other major tech firms have also announced significant layoffs linked to AI-related restructuring. In April, Meta disclosed plans to cut roughly 10% of its workforce, amounting to about 8,000 jobs. Amazon has implemented multiple rounds of job cuts, particularly within its retail division, and in June, Oracle reduced its workforce by nearly 13%, eliminating around 21,000 positions as part of an AI-driven restructuring initiative.

Despite these reductions, it remains uncertain whether the workforce changes have yet resulted in improved productivity. Some firms, including Meta, have moderated their layoff intentions in recent months. At Microsoft, Ryan Roslansky, a senior executive, recently expressed frustration with what he described as “AI slop” affecting workforce efficiency on social media.

Supporting this cautious outlook, a recent working paper from the National Bureau of Economic Research surveyed 9,000 senior executives worldwide and found that 90% reported AI had not yet delivered measurable productivity gains at their companies. This data underscores the ongoing challenges organizations face in translating AI advancements into immediate operational improvements, even as they continue to reshape their workforces in response.