Microsoft voluntary buyouts now cover about 60,000 employees, roughly 27% of a 223,000-person workforce, as the company funds a costly AI infrastructure build-out. Microsoft announced the Voluntary Exit Offer on Monday for certain staff in the United States, Canada, the United Kingdom and India at the vice president level or below, CBS News reported. People who accept are expected to leave by the end of December.
Key Takeaways
- About 60,000 Microsoft employees, roughly 27% of staff, can take a voluntary exit.
- Eligibility covers vice president level and below in the US, Canada, UK and India.
- Amy Hood has put 2026 AI infrastructure spending at $175 billion.
- Data-center, sales, marketing and security teams are largely left out.
What the Microsoft Voluntary Buyouts Include
A person familiar with the matter told CNBC that about 60,000 people are eligible. A spokesperson confirmed that scale to the Los Angeles Times. Headcount was 223,000 at the end of June, down from 228,000 at the end of 2025, CBS reported. CNBC said the offer covers experience level 70 or below and reaches the vice president level, above an earlier plan limited to senior director level 67 and below.
“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” Amy Coleman, chief people officer, wrote in a memo reported by CNBC.
CNBC reported that an April voluntary retirement program made around 7% of U.S. employees eligible. More than 30% of those who could join accepted, Microsoft said in July. The Verge reported that the earlier offer was limited to U.S. staff whose age plus years of service totaled 70 or more, and covered around 9,000 employees.
In July, Microsoft said it was cutting 4,800 jobs, about 2% of global staff, CBS reported. A person familiar with the new plan told CNBC that Microsoft does not have a target in mind this time. The company has not said whether it will lay off workers if not enough employees accept, the Los Angeles Times reported.
Teams Inside and Outside the Offer
The Verge, citing sources familiar with the plan, said participating groups include AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources. Cloud + AI, MicrosoftAI, and corporate, external and legal affairs are only partly included.
- Marketing, commercial business, discovery and quantum, and security are not participating, The Verge reported.
- Data-center, sales and marketing employees are ineligible, Bloomberg reported via CBS and the Los Angeles Times.
- LinkedIn, GitHub, Xbox and Activision Blizzard are outside the program, a spokesperson told the Los Angeles Times.
CNBC’s source said some marketing, sales and engineering teams opted out. Employees must decide in early December and leave on Dec. 31 if they accept, that person said. The Los Angeles Times said deadlines vary by market, with the last day for those who accept expected at the end of December.
Xbox reporting conflicts. The Verge’s sources included that team, while the spokesperson told the Los Angeles Times the studio is outside the program.
AI Infrastructure Spending Sets the Terms
Chief Financial Officer Amy Hood said on a July earnings call, CBS reported, that Microsoft expects to spend $175 billion on AI infrastructure, including data centers, in 2026 alone. September-quarter capital expenditures should exceed $50 billion, Microsoft said in July, CNBC reported. In the same quarter a year earlier, capital spending and finance leases came to $34.9 billion, CNBC said.
| Measure | Figure | As reported |
|---|---|---|
| 2026 AI infrastructure | $175 billion | Amy Hood, July (CBS) |
| September-quarter capital expenditures | Above $50 billion | Microsoft, July (CNBC) |
| Prior-year quarter capital spending and finance leases | $34.9 billion | CNBC |
| Second-quarter free cash flow | $19.64 billion, down 23% | CNBC |
In the second quarter, Alphabet and Amazon reported negative free cash flow, while Microsoft stayed positive at $19.64 billion, down 23% year over year, CNBC said. CNBC also reported that Microsoft is trying to charge clients based on how much AI they use, after arming programmers, sellers and supply chain workers with AI tools and observing noticeable results. That data-center capacity serves Anthropic, OpenAI and other cloud customers, CNBC reported.
What the Offer Means for Large Employers
For large organizations, the useful reading is where Microsoft is not inviting exits. Data-center staff are excluded while September-quarter capital expenditures are set to top $50 billion and 2026 infrastructure spending is pegged at $175 billion. Finance and human resources are reported inside the pool, The Verge said.
That pattern is not evidence that AI has replaced the work. The Los Angeles Times reported that Microsoft acknowledged AI is automating tasks, but said the roles being eliminated in July were not being replaced by AI.
“There is no one-size-fits-all approach for every team or every employee,” Coleman wrote, The Verge reported. Related coverage of AI payoff outside tech and the AI cost squeeze sits beside the same spending question. Microsoft is scheduled to report third-quarter results on Wednesday, CNBC said.
