Microsoft plans $175 billion AI spending in 2026

Microsoft has introduced a voluntary exit program for eligible employees across the U.S., Canada, India, and the United Kingdom. Around 60,000 employees, or nearly 27% of its global workforce, of 223,000. They could qualify for the offer, according to a CNBC report. The program covers employees at level 70 and below in participating teams, although eligibility varies across business units. Those who opt in will receive financial support and career planning resources to help them transition out of the company. The move comes as Microsoft continues to invest heavily in artificial intelligence infrastructure while reviewing its operating cost. The company has been expanding its AI and cloud computing capabilities, requiring significant spending on data centers and computing capacity. At the same time, it is giving eligible employees the option to leave voluntarily, allowing participating teams to adjust their workforce to changing business requirements. However, the program does not apply across the entire organization, with some teams excluded based on business priorities and customer commitments. The voluntary exit offer follows several workforce restructuring measures this year. In April, Microsoft introduced a voluntary retirement program for approximately 7% of its U.S. workforce. In July, it announced job cuts affecting around 4,800 employees. Other technology companies, including Meta, Amazon and Oracle, have also reduced their workforces amid efforts to control costs and expand AI capabilities. However, the extent to which these reductions translate into higher productivity still remains uncertain. A working paper by the National Bureau of Economic Research found that 90% of surveyed senior executives had yet to report productivity gains from AI at their companies. Microsoft's latest program offers employees a choice to leave, but the number who ultimately accept the offer remains unclear.