Microsoft to Offer Voluntary Buyouts to 60,000 Employees Amid AI-Driven Cost Cuts
Microsoft plans to extend voluntary buyout packages to up to 60,000 staff members as part of a cost-reduction effort linked to its expanding use of artificial intelligence.
Microsoft said it will make voluntary buyout offers to as many as 60,000 employees, targeting several of its major divisions as it seeks to lower costs while expanding artificial-intelligence initiatives. The program follows an earlier voluntary retirement offer announced in April that covered roughly 7% of the company’s U.S. workforce, which then numbered about 125,000 people, out of a global headcount of roughly 223,000.
Divisions such as Xbox, Windows and the AI-driven Copilot tool are included in the offer, while staff in areas like cybersecurity, data centers and marketing are excluded, according to Bloomberg reporting.
"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs," said Amy Coleman, Microsoft’s executive vice-president and chief people officer, in a statement.
The company declined to provide further details about the buyout terms. The move comes as other technology firms, including Meta, Amazon and Oracle, have also announced workforce reductions tied to AI investments, though the impact of these cuts on overall efficiency remains uncertain.