Microsoft opens exit window for 60,000 staff as AI spending hits $50 billion

Microsoft announced on Monday that it is extending voluntary exit offers to a large portion of its global workforce. The move aims to balance the company's massive artificial intelligence infrastructure buildout with capital efficiency.

The new voluntary exit offer applies to certain workers in the United States, Canada, India, and the United Kingdom. Eligibility is limited to employees at experience level 70 or below. According to a person familiar with the matter, roughly 60,000 people qualify for the package. This figure represents about 27% of Microsoft's total workforce of 223,000 employees.

The company has increased spending on data centers to meet high AI computing demand. Microsoft supplies cloud services to clients including Anthropic and OpenAI. Capital expenditures for the September quarter are expected to exceed $50 billion, a sharp rise from the $34.9 billion reported in the same quarter a year ago.

This spending pressure has already triggered workforce changes. In April, the company introduced its first voluntary retirement program, which was available to about 7% of U.S. employees. In July, Microsoft followed up by announcing plans to lay off 4,800 workers.

Amy Coleman, Microsoft's executive vice president and chief people officer, described the new offer in a memo to staff. She stated that the initiative creates greater flexibility and allows employees to shape their next chapter. Coleman noted that the program builds on lessons learned from the earlier voluntary retirement effort.

The buyout extends the company's shift toward usage-based pricing for AI services. Microsoft has equipped programmers, sales staff, and supply chain workers with AI tools to improve efficiency. The company aims to retain the right talent for new growth opportunities while maintaining a strong financial profile. Microsoft reported $19.64 billion in positive free cash flow in the second quarter, a 23% drop year over year, though it remained positive unlike rivals Alphabet and Amazon.

Employees must decide whether to accept the offer by early December. Those who participate will leave the company on December 31. Some marketing, sales, and engineering teams have opted out of the program. The new initiative reaches higher than the previous retirement program, which was limited to senior director level 67 and below. Microsoft has not set a specific target number for participation. The company is scheduled to report third-quarter results on Wednesday.