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New York, Oktober 28, 2026 – Microsoft has unveiled one of its most sweeping workforce reduction programs, offering voluntary buyouts to more than a quarter of its global staff.
The move, affecting roughly 60,000 employees, underscores the company’s determination to streamline operations while channeling unprecedented capital into artificial intelligence infrastructure.
The buyout program targets employees at level 70 and below across Canada, India, the UK, and the US.
Teams in AI Experiences, Copilot, Finance, HR, Xbox, and Windows + Devices are included, while divisions such as Marketing, Commercial Business, and Security remain untouched.
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Eligible staff were promised detailed instructions within hours of the announcement, signaling the urgency behind the initiative.
This restructuring comes as Microsoft prepares to spend an estimated $175 billion in capital expenditure for 2026, largely directed toward AI data centers and semiconductor investments.
The scale of spending has raised investor concerns about whether such aggressive bets will yield sustainable returns.
Analysts note that while the buyouts may ease near term cost pressures, they also highlight the company’s willingness to sacrifice breadth in order to sharpen focus on AI.
The program follows earlier workforce actions. In early 2026, Microsoft offered voluntary buyouts to 9,000 employees, about 7 percent of its U.S. staff.
By July, another 4,800 jobs were cut globally, representing 2.1 percent of the workforce, with Xbox restructuring and studio divestments at the center.
The latest announcement dwarfs those measures, positioning itself as a defining moment in Microsoft’s labor strategy.
Market reaction has been cautiously optimistic. Shares rose about 1 percent on the day of the announcement, extending a 10 percent gain year to date.
Investors appear to welcome the cost discipline, though skepticism lingers over whether AI driven capital outlays can deliver the profit trajectory Microsoft envisions.
For employees, the buyout offers financial cushioning but signals limited job security in non core divisions.
For Microsoft, it reflects a dual strategy: trimming legacy operations while doubling down on AI bets.
And for the broader tech industry, it illustrates a growing trend companies are reshaping their workforces to align with the demands of artificial intelligence, even at the expense of traditional business units.
