Microsoft is rolling out a fresh voluntary separation programme for eligible employees in India, the US, the UK and Canada as the technology company balances workforce requirements with rising investments in artificial intelligence. The initiative could be available to around 60,000 employees, more than a quarter of its global workforce, according to a Reuters report.
The time-bound offer will cover employees at level 70 and below in selected teams across the four countries. Microsoft said eligible staff would receive information about the programme within hours of its announcement on Monday, giving them the option to leave the company with support.
The move comes as major technology companies commit hundreds of billions of dollars to AI infrastructure, particularly data centres and advanced chips. The scale of this expenditure has raised questions among investors about how quickly these investments will translate into sustainable returns.
Microsoft has projected capital expenditure of $175 billion for calendar year 2026. Its first-quarter financial results are due after markets close on Wednesday, putting its spending plans and business performance in focus.
Which Microsoft employees qualify for the buyout?
The programme will be open to eligible employees in participating teams in India, the United States, the United Kingdom and Canada, provided they are at level 70 or below.
According to a source familiar with the matter who spoke to Reuters on condition of anonymity, the participating divisions include AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices. Marketing, commercial business and security teams will not be included.
Microsoft Chief People Officer Amy Coleman explained that the initiative was designed to offer employees greater flexibility while helping the company adjust to changing organisational needs.
In a staff memo, Coleman said the programme would allow employees considering opportunities outside Microsoft to make the transition with support. She added that it would give participating teams another option for adapting their workforce.
The company described the initiative as a limited-period voluntary offer informed by its experience with an earlier voluntary retirement programme.
Microsoft reported 223,000 full-time employees worldwide as of June 30, 2026, according to its annual filing.
New offer follows earlier workforce reductions
The latest initiative follows another voluntary buyout programme announced by Microsoft earlier this year, which covered approximately 7% of its US workforce, or around 9,000 employees.
The company also announced plans in July to eliminate 4,800 jobs, representing roughly 2.1% of its global workforce, as part of a restructuring of its Xbox gaming operations. The plans included the potential divestment of as many as five studios.
Those changes were intended to improve the gaming division's returns following years of substantial investment.
The latest offer signals another effort to reshape Microsoft's workforce even as it continues to allocate significant resources to AI development and computing infrastructure.
AI investments remain under investor scrutiny
Microsoft's workforce measures come amid an industry-wide expansion of AI infrastructure spending. Technology companies are investing heavily in computing capacity, chips and data centres to support the development and deployment of AI products.
However, investors are increasingly examining whether the revenue generated by these investments will justify their cost.
Microsoft's upcoming quarterly earnings report is expected to provide further insight into the company's financial performance and the progress of its AI-related business.
The company's shares, which had risen by about 10% over the course of the year, gained approximately 1% on Monday following news of the buyout programme.
Business Insider was the first to report the latest offer, Reuters said.