Microsoft has introduced a voluntary exit programme for eligible employees in the United States, Canada, India and the United Kingdom, offering them the option to leave the company under a buyout arrangement.
A company spokesperson said the offer is available to employees at the vice-president level and below in selected teams. However, certain groups, including some staff working in data centres, sales and marketing, have been excluded from the programme.
Amy Coleman, Microsoft’s executive vice-president and chief people officer, explained the initiative in an internal memo, saying the programme was intended to provide employees with greater flexibility and more opportunities to decide their future career paths as the company adapts to organisational changes.
This marks Microsoft’s second voluntary departure offer this year. In April, the company reportedly gave approximately seven per cent of its US workforce the option of early retirement. Around 30 per cent of eligible employees accepted that offer, according to media reports.
Microsoft employed 223,000 people worldwide at the end of June, compared with 228,000 at the end of 2025, according to regulatory filings. Approximately 27 per cent of its workforce qualifies for the latest buyout programme.
The company is expected to release its quarterly financial results later this week.
The latest initiative comes as major technology companies increase investment in artificial intelligence (AI), raising concerns about the technology’s potential impact on employment.
Industry leaders, including Anthropic Chief Executive Officer Dario Amodei, have warned that AI could lead to substantial job losses as businesses automate more tasks and restructure their operations.
Several major technology firms have announced workforce reductions in recent months. Netflix is reportedly planning to eliminate around six per cent of its workforce, equivalent to approximately 1,000 positions, according to US media reports.
Online marketplace eBay cut 1,000 jobs earlier this month, following another round of approximately 800 job reductions earlier in the year.
Meta reduced its global workforce by around 10 per cent in May, affecting approximately 8,000 employees. In April, the company also cancelled plans to recruit an additional 6,000 workers and announced that around 7,000 existing employees would move into roles associated with AI-driven workflows.
Ride-hailing company Uber announced in September that it planned to cut approximately 10 per cent of its workforce, potentially affecting 3,000 or more employees. Meanwhile, e-commerce giant Amazon announced 16,000 job cuts worldwide in January.
Microsoft itself eliminated nearly 5,000 positions in July, with a significant portion of the reductions affecting its Xbox gaming division.
Despite workforce reductions across the sector, major technology companies continue to commit substantial resources to AI infrastructure, including data centres, advanced chips and computing systems.
Amazon, Microsoft, Alphabet and Meta are collectively expected to invest approximately $700 billion in AI-related infrastructure during the current year.
Microsoft reported spending $41 billion between April and June and projected expenditure of $50 billion for the July-to-September quarter. However, the company revised its full-year 2026 spending forecast to $175 billion, down from its earlier estimate of $190 billion.
Microsoft Chief Financial Officer Amy Hood told analysts that roughly two-thirds of the company’s spending was directed towards short-lived assets, particularly chips, to meet customer demand for both AI-related and conventional computing infrastructure.
The developments highlight the technology industry’s ongoing shift towards AI investment, alongside efforts to manage costs and reshape workforces.
