Highlights
- Microsoft is rolling out voluntary buyouts for up to 7% of its U.S. workforce, aimed at long-tenured employees.
- The company cut over 15K roles in 2025, including 9K layoffs at the start of FY2026.
- Capital expenditure by Microsoft, Google, Amazon, and Meta exceeded $400B in 2025, driven by AI infrastructure.
Microsoft is offering voluntary buyouts to up to 7% of its U.S. workforce, focusing on long-serving employees. This step aligns with its broader shift in resources toward artificial intelligence (AI) infrastructure. The program, disclosed in internal memos reported by Bloomberg and The NY Times, marks the first buyout initiative of this scale in the company’s history and follows multiple rounds of layoffs.
The one-time program applies to U.S.-based employees at or below the senior director level whose age and tenure combined equal 70 or more. Employees on sales incentive plans are excluded. Microsoft had about 125K employees in the U.S. as of June 2025, indicating roughly 8,750 could be eligible.
Further details are set to be shared on May 7, 2026. Financial terms remain undisclosed, leaving participation uncertain.
Microsoft Buyouts Follow Layoffs, and Cost Controls
The move follows workforce reductions, including about 9K job cuts announced in July 2025, at the start of Microsoft’s FY2026. Combined with earlier cuts in 2025, the company reduced more than 15K roles as it managed costs and shifted resources toward AI infrastructure.
Globally, the company employed 228K people as of June 2025. However, the buyout program is positioned as a voluntary alternative to further layoffs.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” said Amy Coleman, executive vice president (EVP) and Chief People Officer (CPO) of Microsoft.
Microsoft is also adjusting compensation. Managers will no longer be required to link stock awards directly to cash bonuses and will have fewer pay options with more flexibility to recognize performance.
Xbox
Big Tech Workforce Shifts Accelerate With AI Investments
The decision aligns with a broader shift across major technology companies. Meta, Amazon, and Oracle have all reduced headcount while increasing spending on AI infrastructure such as data centers. Amazon, Google, Microsoft, and Meta together spent more than $400 billion USD on capital expenditures in 2025, with further increases expected.
Meanwhile, Meta plans to cut 10% of its workforce, about 8K, and leave 6K positions unfilled. Combined actions by Microsoft and Meta could affect up to 23K jobs.
As companies expand AI capabilities, workforce restructuring is emerging as a key way to offset rising infrastructure costs while maintaining long-term investments.
