Microsoft extends $175 billion AI budget with new buyout wave

Microsoft is shifting its workforce structure to accommodate a massive capital expenditure on artificial intelligence. The company announced on Monday that it is extending voluntary exit packages to approximately 60,000 employees. This group represents about one-quarter of its global workforce. The move aligns with a financial strategy that prioritizes heavy investment in AI infrastructure over labor costs.

The offer is currently open to eligible employees in the United States, Canada, India, and the United Kingdom. To qualify, workers must hold positions at the vice president level or below. Amy Coleman, the company's chief people officer, stated that the program allows eligible staff to transition out of the firm with financial support and career planning resources. Coleman sent the announcement to employees via email on Monday.

The funding for this restructuring comes from a record spending plan. Microsoft Chief Financial Officer Amy Hood disclosed in a July earnings call that the company expects to spend $175 billion on AI infrastructure in 2026. This sum includes investments in data centers. The buyout program serves as a mechanism to manage labor expenses while that capital is deployed.

This is the second voluntary exit program offered by Microsoft in 2026. In May, the company proposed buyouts to roughly 8,750 individuals, which accounted for 7% of its U.S. workforce. A separate reduction in July saw 4,800 jobs eliminated. That cut represented approximately 2% of the global staff. These actions have reduced the total headcount from 228,000 at the end of 2025 to 223,000 by the end of June, according to regulatory filings.

Agence France-Presse estimates that 27% of the current workforce is eligible for the new offer. The program is designed for mid-level workers and remains available for a limited period. The company is using the buyouts to provide financial padding to departing staff while securing savings on ongoing salaries.

Not all departments are included in the current round. Bloomberg reported, citing a company spokesperson, that employees in sales and marketing are ineligible. Workers focused on data centers are also excluded from the offer. These exclusions suggest the company is retaining specific technical and revenue-generating roles while shedding other mid-level positions.