Microsoft is offering buyouts to 60,000 staff, equivalent to more than a quarter of its total workforce as the company looks to further reduce headcount.

That figure comes via sources in multiple reports, but Microsoft has confirmed the looming job cuts in a memo to staff, since published online.

The reduction comes as Microsoft invests further in AI and amid wider job losses in the industry. Earlier this year, Microsoft laid off 4,800 staff following a voluntary retirement offer in the spring.

Microsoft reports its quarterly results later this week.

Leaving by choice

As many as 60,000 workers are eligible to opt for the “voluntary exit” offer, sources told CNBC, out of a total global headcount of 223,000. It’s worth noting that the 60,000 figure represents those eligible, not the number expected to take up the offer.

Indeed, one publication reported that Microsoft predicts a smaller proportion of staff to take up the deal than a voluntary retirement offer earlier this year. That offer was accepted by around 30% of those approached by the tech giant.

Another source told Reuters that the buyout offer would be applicable across a wide range of business divisions, including AI experiences, Copilot, finance, gaming, Windows + Devices and more, but not marketing, commercial business, or security.

In a memo published online, Microsoft’s chief people officer Amy Coleman said that employees offered the buyout span teams in Canada, India, the UK and the US, at experience level 70 and below.

This is based on an internal system for grading staff. Level 70 refers to senior positions such as a general manager or partner-level technical leader, according to one social media post.

Coleman added that the voluntary exit offer was time limited, with CNBC noting that it would expire by early December.

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Coleman wrote in the memo.

“It also gives participating organizations another way to adapt their workforce to changing needs.”

Microsoft offered that aforementioned voluntary retirement program in April to 7% of American employees, followed by layoffs of 4,800 staff in July. Last year also saw multiple rounds of layoffs at the company.

Cuts everywhere

Microsoft isn’t the only tech company continuing to reduce headcount. A host of major tech companies have announced layoffs across 2026 so far. In May, Cloudflare revealed plans to cut 1,000 roles, equivalent to around 20% of its workforce.

Oracle also announced 21,000 jobs would be axed in June, pinning the blame on AI. Last year also saw sweeping cuts at Dell Technologies, Salesforce, IBM, and Intel.

Much of this has been pinned on AI, though analysts have suggested the technology isn’t ready to start taking over human roles yet, if ever.

A study by Oxford Economics earlier this year suggested evidence of an AI-inspired shake-up of jobs is “patchy” at best, with job losses really down to wider economic forces.

Some companies have said just that, with Atlassian saying last year’s cuts to customer service have nothing to do with AI, and Amazon’s 14,000 cuts pinned on reducing bureaucracy.

Microsoft’s motivation behind the voluntary exit scheme is also reportedly due to AI-related costs. Reports from Reuters, for example, suggest the company aims to reduce costs amid heavy spending on AI infrastructure.

Capital expenditures for the next quarter are expected to top $50 billion.

ITPro approached Microsoft for confirmation and comment, but did not receive a response by time of publication.

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