Microsoft launches voluntary exit program for 60,000 staff
Microsoft announced a voluntary buyout offer covering about 60,000 employees, roughly a quarter of its global workforce, as part of cost-cutting measures while it expands AI spending.
Microsoft said on Monday that it will extend a voluntary exit offer to approximately 60,000 employees, representing about 27% of its global staff. The program targets workers at vice-president level and below in the United States, Canada, India and Britain, while employees in data-centre operations, 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," executive vice-president and chief people officer Amy Coleman wrote in an internal memo.
The offer follows a similar voluntary retirement program introduced in April, which covered around seven percent of the U.S. workforce and saw about 30% participation, according to a CNBC report. Microsoft’s total headcount stood at 2.23 million at the end of June, down from 2.28 million a year earlier.
The company is slated to release its quarterly earnings later this week. Analysts note that the move comes as Microsoft, along with other large technology firms, continues to invest heavily in artificial-intelligence infrastructure, allocating billions of dollars to chips, data centres and related assets.
Microsoft’s CFO Amy Hood has indicated that two-thirds of the firm’s AI-related spending is directed toward short-lived assets such as chips, reflecting strong customer demand for both AI and non-AI computing power.