Microsoft is offering voluntary buyouts to a large share of its workforce as it tries to balance heavy AI spending with tighter finances, according to
CNBC. The new Voluntary Exit Offer is open to certain employees in the US, Canada, India and the United Kingdom, at levels up to vice president. A person familiar with the matter told CNBC that about 60,000 people are eligible, roughly 27% of Microsoft's 223,000 employees. Workers have until December to decide, and those who accept will leave on December 31st.

This is the latest in a series of workforce moves this year. In April, Microsoft launched its first-ever voluntary retirement program, which about 7% of US employees qualified for. Microsoft said more than 30% of those eligible took it. In July, the company announced 4,800 layoffs. Chief people officer Amy Coleman wrote in a memo to staff that the new offer is meant to create "greater flexibility" and give employees "more ways to shape their next chapter." The person familiar with the plan said Microsoft has no target number this time, and some marketing, sales and engineering teams have chosen not to take part.

The pressure comes from Microsoft's rapid data center buildout to meet AI demand, including cloud services for customers like Anthropic and OpenAI. Microsoft still reported $19.64 billion in positive free cash flow in the second quarter, while rivals Alphabet and Amazon both reported negative free cash flow. That figure was down 23% from a year earlier, though. Microsoft reports its third-quarter results on Wednesday.