The offer is available to eligible employees at vice president level and below across selected teams in the United States, Canada, India and Britain. However, some groups, including certain data centre, sales and marketing employees, are excluded from the programme.
Amy Coleman, Microsoft’s executive vice president and chief people officer, said the voluntary exit offer would provide employees with greater flexibility and opportunities to decide their next career steps.
The latest initiative marks Microsoft’s second voluntary buyout programme this year. In April, the company reportedly offered early retirement to around seven per cent of its US workforce, with approximately 30 per cent of eligible employees accepting the offer, according to CNBC.
Microsoft employed 223,000 people globally at the end of June, down from 228,000 at the end of 2025, according to regulatory filings. Around 27 per cent of its workforce is eligible for the latest offer.
The move comes as major technology companies increase spending on AI infrastructure, including data centres, advanced chips and computing systems, raising concerns about employment prospects across the industry.
Several technology firms have announced significant workforce reductions this year. Amazon announced 16,000 global job cuts in January, while Meta eliminated around 8,000 positions in May. EBay also laid off 1,000 employees earlier this month.
Microsoft previously cut nearly 5,000 jobs in July, with its Xbox gaming division heavily affected.
Despite the workforce reductions, Microsoft and other technology giants continue to commit substantial resources to AI development. Amazon, Microsoft, Alphabet and Meta are collectively expected to spend approximately $700 billion on AI-related infrastructure during 2026.
Microsoft has also forecast substantial annual spending, highlighting the financial pressure of expanding AI capabilities while managing operating costs.
The latest buyout programme reflects the growing challenge facing technology companies as they balance investment in emerging technologies with workforce restructuring.
