Microsoft said Monday, Oct. 26, that it is offering voluntary buyouts to about 60,000 employees as it works to contain costs and support its large investments in artificial intelligence. Eligible staff in Canada, India, the United Kingdom and the United States will have access to the program.
The number receiving offers represents more than a quarter of Microsoft's global workforce. The company reported 223,000 full-time employees worldwide as of June 30 in its annual filing. Microsoft declined to provide CBC News with the number of Canadian employees who had been offered a buyout.
Eligibility spans several parts of the company, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, a person familiar with the matter told Reuters. The source, who requested anonymity because the information was private, said marketing, commercial business and security would be excluded.
Amy Coleman, Microsoft's executive vice-president and chief people officer, outlined the offer in a memo to employees. She said it would support eligible workers considering a future outside Microsoft while providing participating organizations with another means of adjusting their workforces to changing needs.
Microsoft described the initiative as voluntary and available for a limited time. It said the program drew on lessons from an earlier voluntary retirement offering and that eligible employees would receive further information within hours of the announcement.
The move comes as Microsoft and other major technology companies spend hundreds of billions of dollars on AI data centres and chips. Those commitments have prompted investor scrutiny of whether the eventual returns will justify the costs. Microsoft has forecast capital expenditures of $175 billion US for the 2026 calendar year.
The company is scheduled to release its first-quarter financial results after markets close on Wednesday. Its shares rose about one per cent on Monday, following a gain of roughly 10 per cent this year. Business Insider first reported the buyout development.
Earlier this year, Microsoft offered voluntary buyouts to approximately 9,000 employees, representing about seven per cent of its U.S. workforce. In July, it also announced plans to eliminate 4,800 jobs, or around 2.1 per cent of its worldwide workforce. That announcement included an overhaul of Xbox and the divestment of up to five studios as Microsoft sought stronger returns after years of substantial investment in its gaming division.
