Microsoft offers buyouts to nearly 30% of workforce in ongoing AI shift

In a note to employees on Monday, chief people officer Amy Coleman introduced the new program, noting that eligible employees include senior leaders, up to vice presidents.

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Coleman wrote to employees in a memo that Microsoft published on its blog. Microsoft employed about 223,000 people at the end of June, down 5,000 workers from the same period in 2025.

Microsoft has been cutting headcount to trim costs while investing billions to build out AI data centers. In April, the company offered a similar voluntary buyout program to long-tenured employees, its first time making such an arrangement. At the time, Coleman noted that Microsoft was aiming to move faster and simplify its operations.

Employees who take the latest buyout will get severance payments based on tenure at the company. The specific terms will vary according to labor laws in different countries but will be consistent with standard separation packages, a Microsoft spokesperson told Fortune. In the U.S. that means a minimum of eight weeks’ pay, with continued stock vesting, health care, and career services. To be eligible, employees in the U.S., the U.K., Canada, and India must accept by the first week of December, with those participating leaving on Dec. 31.

Chief executive Satya Nadella has made several leadership changes amid a wave of executive departures. As Nadella seeks to win the enterprise and cloud AI markets, Microsoft’s workplace culture and leadership structure have shifted. Ryan Roslansky, an executive vice president who also served as LinkedIn CEO, recently announced his departure, as did chief communications officer Frank X. Shaw. Earlier this year, other longtime executives, including gaming chief Phil Spencer and Rajesh Jha, executive vice president of experiences and devices, retired.

Other tech giants have also trimmed their workforces in response to rising expenses. In June, Google offered buyouts to select employees. Amazon has also cut jobs in divisions such as its Stores unit after laying off about 30,000 workers between late 2025 and early this year.

When asked how many employees Microsoft expects to accept buyouts, the spokesperson pointed to other major tech companies that have had similar programs and saw a 3% to 5% uptake.

Microsoft remains among the tech industry’s top spenders on data centers. In its most recent quarterly report, the company noted $41 billion in capital expenditures for the quarter ending in June, while projecting $145.3 billion in total spending for its 2026 fiscal year.

In July, Microsoft cut about 4,800 jobs, following more than 15,000 layoffs in 2025. Most of the recent cuts have been centered in its struggling Xbox unit, which has dragged on overall financial performance.

Microsoft is scheduled to report its first-quarter earnings on Wednesday. Its shares are up about 25% over the past six months.