Microsoft offers voluntary severance to about 60,000 employees, while ramping up AI infrastructure investment
Microsoft announced that it is offering voluntary severance to about 60,000 employees at level 70 and below in the United States, Canada, India and the United Kingdom, roughly a quarter of its total workforce; the company did not say how many would ultimately accept. Microsoft previously disclosed that it would invest about $116 billion in property and equipment in fiscal 2026, mainly for cloud and AI data centers, about $50 billion more than in fiscal 2025. According to Bloomberg, the program covers teams including Xbox, Windows, Copilot and finance, but excludes some data center, sales and marketing personnel.
Why read this
AI score 69
Microsoft is offering voluntary severance to about 60,000 employees while disclosing roughly $116 billion in capital expenditures for fiscal 2026, giving readers a view of the trade-off between AI investment and workforce structure.
Topics
Body
Following billions in AI investments last fiscal year, Microsoft announced Monday that it is offering buyouts to roughly 60,000 employees, about a quarter of its workforce, a person familiar with the matter told CNBC. The voluntary exit offer applies to staff at experience level 70 or below across the US, Canada, India and the UK.
According to Microsoft, the move is tailored to give “eligible employees who may be considering a future outside the company a new choice to make that transition now with support.” Microsoft didn’t say how many employee buyouts it will accept, though it’s likely fewer than those offered the deal. The company didn’t immediately respond to CNET’s request for comment.
The move comes a few months after Microsoft reported it invested about $116 billion in property and equipment — largely for cloud and AI data-center capacity — in the 2026 fiscal year, about $50 billion more compared with the 2025 fiscal year. Microsoft’s operating income increased by about $30 billion between the 2026 and 2025 fiscal years.
More from CNET
In September, Bloomberg reported that Microsoft is planning on tripling its computing power in the coming years, which could result in the company using more energy than all of New York City at peak hours.
The buyout affects teams including Xbox, Windows, Copilot and finance, but excludes certain data-center, sales and marketing staff, according to Bloomberg. Xbox already cut 1,600 employees in July in one round of layoffs, and another round is expected before June 2027. The voluntary exit offers show that Microsoft is prioritizing infrastructure buildout, automation and capital efficiency over hiring.
Employment in AI-exposed roles such as software development and customer experience has fallen by more than 4% this year, while roles that rely on AI automation are showing slower job growth, according to Stanford HAI’s Digital Economy Lab. Though AI might not yet be eliminating jobs at scale, companies are spending billions on compute while becoming far more selective about adding personnel.
Zachary McAuliffe
Senior writer
Zach began writing for CNET in November, 2021 after writing for a broadcast news station in his hometown, Cincinnati, for five years. You can usually find him hanging out with his wife, son and dog. You can reach him at zmcauliffe@cnet.com.
See full bio
The Latest from Zachary
iOS 27 Cheat Sheet: Quickly Become an Expert on the New iPhone Update
.articleAuthorBioFooter-container
AI Killed the Homework Era
Download iOS 27.2 Now to Bring These Features and More to Your iPhone