Microsoft has offered voluntary buyouts to as many as 60,000 employees, the company announced on October 26, 2026, as it tries to hold down costs while spending heavily on artificial intelligence.

The offer went to staff working in the United Kingdom, the United States, Canada and India, who account for 27% of the group’s total workforce of 223,000 people.

Buyouts to curb costs amid massive AI investment

The reason for the decision is the Redmond giant’s need to reduce costs.

Like other companies betting on the AI business, Microsoft is pouring money into data centers to meet demand for computing power and to supply cloud services to heavyweights such as Anthropic and OpenAI.

In July, the American tech giant said it expects capital expenditure for the third quarter of 2026 to jump to more than $50 billion, against $34.9 billion in the same period of 2025, including finance leases. If the forecast holds, spending would rise 43.3% year over year.

The AI race demands enormous investment in servers, data centers and semiconductors. Microsoft sits at the center of that market, serving the companies building AI models. Supplying those services means very substantial costs.

Investors are already asking how much AI spending will return in profits and revenue. Offering 60,000 employees the chance to leave early is Microsoft’s attempt to pull its own costs back.

The precedent: the first early retirement plan in company history

Back in April, Microsoft announced the first early retirement plan in its history, open to roughly 7% of its American employees.

In July, the group announced a plan to lay off up to 4,800 employees.

Microsoft on the buyout plan: “to create greater flexibility”

Amy Coleman, executive vice president and chief human resources officer, set out the reasoning in a memo to employees on October 26, 2026:

“The voluntary exit offer reflects an important part of how we are evolving our approach to change: creating greater flexibility and, where possible, offering employees more opportunities to decide their professional future.”

Coleman added that “the initiative builds on what was learned earlier this year with the voluntary retirement program”.

A transformation of Microsoft’s business is under way

The offer lands while - according to a CNBC article - Microsoft is remaking its business model, moving toward charging customers based on actual use of artificial intelligence.

The group has put AI tools in the hands of programmers, sales staff and supply chain personnel, with tangible results.

The company known for Windows and Office also wants the skills it needs to take the most promising new growth opportunities.

Microsoft shares and what changes for investors

Microsoft shares closed the Wall Street session of October 26, 2026 up 1.54%, at $532.60. The stock is slightly lower in pre-market trading.

Investors can read the buyout plan as good news: it is a cost-cutting measure that could support margins.

Measuring the real impact is harder. How many employees will take the offer is unknown, as is the cost of the incentives and, above all, whether the savings can offset what AI spending is taking out of the accounts.

Editor’s note

This article was originally published in Italian on money.it by Laura Naka Antonelli on October 27, 2026 as «Effetto AI, Microsoft offre incentivi all’esodo a 60.000 dipendenti. Chi sarà colpito e dove». It has been translated and adapted for an international audience by the Money.it International desk.