Microsoft offers voluntary exit packages to 60,000 employees in India, 3 other countries amid AI spending

PTC News Desk: Microsoft is offering voluntary buyouts to eligible employees in India, the United States, the United Kingdom and Canada as the company looks to control costs while increasing its investment in artificial intelligence (AI). According to reports, the programme could cover around 60,000 employees, representing more than a quarter of the company’s global workforce.

Microsoft said the time-limited offer would be available to eligible employees at level 70 and below in selected teams across the four countries. Employees were expected to receive details of the programme within hours of the announcement.

According to a source familiar with the matter, the offer will cover several divisions, including AI experiences, Copilot, finance, human resources, Xbox, and Windows Devices. However, marketing, commercial business and security teams will not be included.

Who is eligible for buyout programme ?

The voluntary buyout scheme is open to eligible employees at level 70 and below in participating teams in India, the US, the UK and Canada.

Microsoft described it as a time-limited initiative that builds on lessons learned from an earlier voluntary retirement programme. The company said eligible employees would receive further information about the offer.

According to Microsoft's annual filing, the company had 223,000 full-time employees worldwide as of June 30, 2026.

Microsoft increases AI spending

The buyout offer comes as Microsoft and other major technology companies are investing hundreds of billions of dollars in AI infrastructure, including data centres and advanced chips.

These investments have raised questions among investors about whether the companies will generate enough returns to justify the high costs.

Microsoft has forecast capital expenditure of $175 billion for the 2026 calendar year. The company was scheduled to announce its first-quarter financial results after the market closed on Wednesday.

Investors are expected to examine the results for signs that Microsoft's AI investments are driving business growth and generating returns.

Previous job cuts and buyouts offer

The latest programme follows an earlier voluntary buyout offer announced by Microsoft this year. That initiative covered approximately 7% of its US workforce, or around 9,000 employees.

In July, Microsoft also announced plans to cut 4,800 jobs, representing about 2.1% of its global workforce, as part of changes to its Xbox gaming business. The company also planned to sell or otherwise divest up to five studios.

These changes were aimed at improving the gaming division’s financial performance following years of significant investment.

The latest buyout programme is another step in Microsoft's efforts to adjust its workforce while continuing to spend heavily on AI development and infrastructure.

Microsoft shares, which had risen by around 10% this year, gained approximately 1% on Monday following the announcement.

Reuters reported that Business Insider was the first outlet to report the latest buyout offer.