Microsoft to Offer Voluntary Buyouts to About 60,000 Employees
Microsoft plans to extend voluntary buyout offers to roughly 60,000 staff members, about a quarter of its workforce, as part of cost-cutting measures tied to its AI strategy.
Microsoft will make voluntary buyout offers to approximately 60,000 employees, representing roughly 25% of its total staff, in an effort to reduce costs and reshape its workforce for the artificial-intelligence era. The program targets personnel in the United States, Canada, India and the United Kingdom who are at the vice-president level or below, according to a company spokesperson. Divisions including Xbox, Windows, Copilot and finance are participating, while certain groups such as data-centre staff, sales, marketing, cybersecurity and quantum-computing teams are excluded.
"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support," chief people officer Amy Coleman wrote in a memo to staff on Monday.
Eligible workers will receive benefits comparable to a standard severance package. Microsoft expects fewer acceptances than its July voluntary retirement program, which saw more than 30% of roughly 8,750 eligible retirees take the offer. The company’s headcount stood at 223,000 at the end of June, a figure that has remained largely unchanged since 2022 when Microsoft increased spending on AI and data-centre infrastructure.
Investors will be watching the upcoming earnings report for indications that the AI investments are yielding returns. Microsoft shares rose about 1% in midday trading in New York. Similar workforce-adjustment moves have been reported at other tech firms, including voluntary buyouts at Google and headcount reductions at Meta Platforms.