Microsoft Offers Voluntary Buyout to 60,000 Employees, Expects Take-Up Below 5%
Key Facts
Microsoft has offered a voluntary buyout to as many as 60,000 eligible employees, but expects participation to be below 5%, Fortune reported, citing a company spokesperson. That means the figure refers to the pool of eligible employees, not the number expected to leave or to mandatory layoffs. "We do not expect 60,000 people to leave," the spokesperson said. The company wants, in the spokesperson's words, "the right talent in the right places," and said artificial intelligence is not the reason for the voluntary buyout programs. The offer covers participating teams in the United States, Canada, India and the United Kingdom, for employees at job level 70 or below, according to Microsoft's official blog. The announcement comes as the company continues to invest heavily in computing capacity and infrastructure, alongside growth in its cloud services revenue.
Teams' eligibility varies according to each business's priorities, customer commitments and workforce needs, according to a memo by Amy Coleman cited by Fortune from Microsoft's blog. Teams covered by the offer include AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, according to a source cited by Reuters. The offer does not cover marketing, commercial business or security, the same source said. This distribution defines the program's scope within the company, while leaving each business room to align participation with its operating needs and customer service. The company described the program as a new experience for Microsoft. "A voluntary buyout is new for us, and we will learn from it," Coleman wrote. Microsoft will continue helping employees focus on important work and acquire new skills, she added, according to the Associated Press.
Capital spending figures show the scale of spending alongside the workforce restructuring. Microsoft spent about $115.9 billion on property and equipment in the fiscal year ended June 30, 2026, compared with $64.6 billion in the previous year, Fortune reported, citing the company's annual report. Capital expenditures, including finance leases, were $45.2 billion in the quarter ended September 30, up nearly 30%, Fortune reported, citing CNBC. About three-quarters of quarterly spending went toward short-lived assets, such as chips and networking equipment. Chief Financial Officer Amy Hood said she expects capital expenditures to exceed $50 billion in the next quarter. The figures place the employee offer in the context of resource allocation as spending on technical infrastructure continues, while the company has said artificial intelligence is not the reason for the voluntary buyout program.
The announcement came as Microsoft reported strong business growth in the first fiscal quarter ended September 30, 2026. Revenue was $92.3 billion, up 19% year over year, while Azure revenue rose 48%, according to the company's investor relations statement. Microsoft Cloud revenue also reached $63.9 billion, up 30% year over year. On the earnings call, Hood said operating expenses rose 6%, driven by continued investment in computing capacity for research and development and in talent. The results reflect cloud business expansion during the same period the company is increasing spending on equipment and computing, without Microsoft attributing the voluntary buyout program to AI investments.
Eligible employees have until early December to decide, and those who accept the offer will leave on December 31, 2026, Fortune reported, citing CNBC. The schedule gives the company and participating teams time to determine how many employees accept and arrange departures before year-end. Microsoft shares closed at $521.56 on October 30, according to EL7 daily data. The Associated Press reported that the shares rose about 1% on Monday, October 26, the day it published its report on the buyout offer. No other daily share-price comparison for October 30 is available in the closing data provided, while the end-of-December date remains the program's next specified milestone.