Microsoft offers voluntary exit packages to 60,000 staff
Staff at vice-president level and below in select teams across the US, Canada, India and Britain will be eligible as the tech giant seeks to cut costs and invest in AI.
Microsoft has announced a voluntary exit package for around 60,000 employees, roughly a quarter of its workforce, as it aims to reduce costs while investing heavily in artificial intelligence. Eligible staff members from various teams in the United States, Canada, India, and Britain, including those at vice president level and below, will be eligible for the offer. However, certain groups, including those working on data centers, sales and marketing, are excluded.
Amy Coleman, Microsoft's executive vice president and chief people officer, informed employees via a memo that the voluntary exit offer reflects the company's evolving approach to change, offering greater flexibility and more ways for employees to shape their next chapter. This is the second voluntary buyout offer by Microsoft this year, following a similar scheme in April, which reportedly provided around seven percent of its US workforce with the option to retire early.
According to CNBC, approximately 30% of those eligible for the April offer accepted the voluntary retirement plan.
The company, which had 223,000 employees globally at the end of June, down from 228,000 at the end of last year, expects to report quarterly earnings later in the week. Tech layoffs continue to be a concern as major tech companies pour resources into AI-related investments. Concerns about job losses have been raised by industry insiders, such as Anthropic CEO Dario Amodei, who have warned of potential mass job losses.
Other tech giants, including Netflix, eBay, Meta, Uber, and Amazon, have also announced recent layoffs or restructuring efforts.
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