Microsoft offers voluntary exit packages to 60,000 employees in India, US, UK and Canada

Microsoft has offered voluntary exit packages to around 60,000 employees, giving more than a quarter of its global workforce the option to leave the company with support. The programme covers eligible staff in India, the United States, the United Kingdom and Canada, as the technology giant looks to control costs while investing heavily in artificial intelligence (AI).

The offer is voluntary, meaning it does not confirm that 60,000 jobs will be cut. Microsoft had 223,000 full-time employees worldwide as of June 30, 2026. The move comes as the company prepares for another major year of spending on AI chips, data centres and computing infrastructure.

Who is eligible for Microsoft’s voluntary exit offer?

Microsoft said the programme is available to eligible employees in participating teams in India, the US, the UK and Canada at experience level 70 and below. According to reports, employees will have until December to decide whether to accept the offer. Those who choose to leave are expected to depart on December 31.

Microsoft Chief People Officer Amy Coleman said in an internal memo that the programme gives eligible employees who are considering a future outside the company another option, while helping teams adapt to changing business needs. Not every team is included. According to a person familiar with the matter, some marketing, commercial business and security teams are excluded from the offer.

The company has not set a target for how many employees it expects to accept the package.

Why is Microsoft offering buyouts as AI spending rises?

The programme comes as Microsoft forecasts $175 billion in capital expenditure for 2026, reflecting the cost of expanding its AI infrastructure. Microsoft provides cloud computing services to AI companies, including OpenAI and Anthropic, and is investing in the data centres and chips needed to meet growing demand. That spending has drawn investor attention, with questions about whether future AI revenue will justify the cost of building and operating the infrastructure.

Microsoft's latest employee offer provides another way to adjust its workforce as its business needs change. However, the company has not said that the buyout programme alone will fund its AI investments.

Microsoft’s latest move follows earlier workforce changes

This is not the company's first workforce adjustment in 2026. Microsoft previously offered voluntary retirement packages to around 7% of its US workforce. In July, it also announced plans to cut 4,800 jobs as it restructured parts of its Xbox gaming business. The latest offer comes as investors prepare to assess Microsoft's financial performance. The company is scheduled to report quarterly results on Wednesday, providing a fresh look at its spending and cash flow. For employees, the key point is that the offer creates an option to leave rather than announcing a compulsory departure. For investors, it highlights the balancing act facing major technology companies: funding the AI race while managing costs across their existing businesses.