Microsoft Is Paying Workers to Leave So It Can Pay for AI

Microsoft announced a new Voluntary Exit Offer (VEO) potentially affecting 60,000 employees, or 27% of its global workforce, as part of its AI-driven restructuring. The offer is voluntary and time-limited, targeting eligible employees in the U.S., Canada, the U.K., and India. This follows an earlier voluntary retirement program in April 2026 that cost $900 million.

Microsoft (MSFT.O) is offering voluntary buyouts to 60,000 employees (27% of its workforce) in the US, Canada, India, and UK, with departures scheduled for December 31. The move aims to manage costs amid a $175 bn AI infrastructure investment plan for 2026, which is pressuring cash flow. Microsoft reported positive free cash flow of $19.64 bn in Q2 2026, down 23% year-over-year.

Microsoft is offering buyouts to 60,000 employees, over a quarter of its workforce, as part of a voluntary exit program. The company confirmed the job cuts in a memo, citing AI investments and industry-wide layoffs. Eligible staff span various divisions and countries, with the offer expiring in early December. Microsoft reports quarterly results this week, with capital expenditures expected to exceed $50 billion.

Microsoft announced a voluntary buyout program for 60,000 employees, over a quarter of its global workforce, to manage expenses and support AI investments. The offer, available in Canada, India, the UK, and the US, targets staff at level 70 and below. Microsoft plans $175bn in capital expenditures for 2026, focusing on AI. The company previously offered buyouts to 9,000 US employees and cut 4,800 jobs in July.

Microsoft offered voluntary buyouts to 60,000 employees, about 25% of its workforce, in the US, Canada, India, and the UK. The move, driven by AI investments, aims to reduce costs while avoiding forced layoffs. Employees have until early December to decide. Microsoft has previously cut 15,000 jobs last year and 4,800 in July, and offered early retirement to 8,750 older employees.

Microsoft's Edge browser is preinstalled and promoted on Windows PCs, making it difficult for users to switch or maintain other browsers. The Behavioural Insights Team identified 10 dark patterns that hinder user choice. Regulators, including the EU and UK's CMA, are addressing these practices to ensure fair competition. The CMA is considering designating Microsoft as having 'strategic market status' to enforce user choice.