Microsoft is offering voluntary layoffs to 60,000 employees to cut costs and invest in AI

Microsoft is offering voluntary layoffs to about 60,000 employees, the company announced Monday—roughly a quarter of its workforce—as the tech giant seeks to reduce costs while investing heavily in artificial intelligence.

Employees on selected teams in the United States, Canada, India and the United Kingdom at the vice president level or below will be eligible, according to a Microsoft spokesperson. Certain employee groups, including those working in data centers, sales and marketing, are excluded.

"The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," said Amy Coleman, executive vice president and chief people officer, in a memo to employees.

This is the second voluntary exit offer Microsoft has made to its employees this year.

In April, the company reportedly offered about 7% of its U.S. workforce the option to take early retirement. Approximately 30% of those eligible accepted the voluntary retirement plan, according to CNBC.

Microsoft had 223,000 employees worldwide at the end of June, down from 228,000 at the end of 2025, according to regulatory filings.

About 27% of Microsoft's workforce is eligible for this new voluntary exit offer.

The company plans to report its quarterly results later this week.