Microsoft offers buyouts to nearly 30% of workforce in ongoing AI shift
Fortune Sebastian Herrera
Microsoft is offering buyouts to about 60,000 workers. It’s another big AI-era cost cut, and the exits could start Dec. 31.
Based on reporting by Fortune, Sebastian Herrera — read the original for the full story.
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Microsoft is asking roughly 60,000 employees, or about 27% of its workforce, to consider leaving through a buyout program as it keeps pouring money into artificial intelligence. The offer was outlined Monday in a memo from chief people officer Amy Coleman, who said eligible workers include senior leaders, all the way up to vice presidents.
Coleman framed the program as a way for employees who already see a move coming to make that transition with support now. The company has been trimming headcount while building out AI data centers, and this is not its first attempt to do that with a softer landing. In April, Microsoft rolled out a similar voluntary program for long-tenured staff, saying it wanted to move faster and simplify operations.
The package depends on tenure and local labor rules, but Microsoft said it will line up with standard separation terms. In the U.S., that means at least eight weeks of pay, plus continued stock vesting, health care and career services. Workers in the U.S., the U.K., Canada and India have until the first week of December to accept, with departures set for Dec. 31.
The timing lands in the middle of a broader reshaping under chief executive Satya Nadella, who has overseen several leadership changes and a string of departures. Ryan Roslansky, who also ran LinkedIn, and chief communications officer Frank X. Shaw have both said they’re leaving. Earlier this year, Phil Spencer and Rajesh Jha also retired. Microsoft has cut about 4,800 jobs in July and more than 15,000 in 2025, with much of the pressure centered on Xbox.
And the company is still spending at a level that makes the cuts look less like panic and more like a deliberate reordering. Microsoft reported $41 billion in capital expenditures for the quarter ending in June and projected $145.3 billion for its 2026 fiscal year. It’s scheduled to report first-quarter earnings Wednesday, with shares up about 25% over the past six months.
My take — AI-written commentary, not fact-checked reporting
This is what AI discipline looks like in corporate form: keep spending, cut people, call it simplification. Microsoft is not hiding the trade-off; it just expects the market to admire the efficiency while everyone else notices the pink slips. That’s the modern tech script, and it’s getting old fast.
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