60,000 Microsoft Jobs At Risk: Voluntary Buyout For Level 70 And Below In India, US, UK, Canada Amid $175 Billion AI Spend

New Delhi: Microsoft has rolled out a major voluntary exit programme across 4 key markets, including India, as the tech giant looks to keep a lid on costs while pouring money into artificial intelligence (AI). As per a report, the time-limited initiative could apply to around 60,000 employees, more than a quarter of the tech giant's global workforce.

The company confirmed that the offer is for eligible staff at level 70 and below working in participating teams in Canada, India, the United Kingdom and the United States. Reports suggested that those who qualify will receive details of the package, which allows them to leave voluntarily with support, within hours of the announcement being made on Monday.

The announcement was made at a time when Microsoft prepares to report the first-quarter numbers after markets close on Wednesday. The investors are expected to watch closely the set of results for signs of how the company's massive AI bets are translating into growth.

Who Can Take The Offer And Which Teams Are Covered

According to Microsoft, the programme builds on insights gained from an earlier voluntary retirement scheme and is being termed a time-limited, voluntary initiative. Chief People Officer (CPO) Amy Coleman outlined the thinking behind it in a staff memo. "This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs," Coleman said.

A source familiar with the matter told Reuters, requesting anonymity because the matter was private, that the programme will cover eligible employees across several divisions, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices. Teams in marketing, commercial business and security will be excluded from the offer. The company stated that eligible employees were expected to receive details within the next few hours.

In the annual filing, Microsoft said that it had 223,000 full-time employees globally as of June 30, which means the latest programme could impact about 27% of the workforce.

Huge AI Spend And Cost Pressure Behind The Move

The offer comes at a time when Microsoft and other technology giants are pouring hundreds of billions of dollars into AI infrastructure, including data centres and chips, triggering investors to question whether the returns will justify the enormous spending.

Microsoft has forecast capital expenditure of $175 billion for the 2026 calendar year as the tech giant ramps up its AI capabilities. The financial pressure is being felt across the industry as the gusher of investment makes memory chips, processors and electricity more expensive.

Previous Job Cuts And Market Reaction

Notably, the latest workforce adjustment is not Microsoft's first this year. The latest offer followed an earlier voluntary buyout programme that covered about 7% of the US workforce, or around 9000 employees, as reported earlier. In July, the company also announced plans to cut 4800 jobs, equivalent to about 2.1% of the global workforce, as it restructured the Xbox gaming business and planned to divest up to 5 studios. The changes were aimed at improving returns from the gaming division after years of heavy investment.

The latest buyout is reportedly another step in Microsoft's efforts to adjust the workforce while continuing to commit substantial resources to AI development and infrastructure. The investors appeared to take the development in their stride. Microsoft shares, which had gained around 10% this year and hit an all-time high this month, were up about 1% on Monday.