Microsoft to offer buyouts to 60,000 workers in latest cost cut
The world’s largest software maker has shed tens of thousands of workers in waves of layoffs in recent years.
Microsoft plans to provide buyouts to approximately 60,000 employees as part of its cost-cutting measures and workforce restructuring efforts to adapt to the artificial intelligence era. Eligible personnel at select teams in the US, Canada, India, and the UK, including those on the vice-president level and below, will be offered this opportunity, according to a Microsoft spokesperson. Certain employee pools, such as those focused on data centers, sales, and marketing, are not eligible for this program.
The offer aims to provide eligible workers contemplating a change in career trajectory with an option to transition now with support. Chief People Officer Amy Coleman announced this through an employee memo on October 26. Recipients will receive benefits akin to a standard severance package. While Microsoft has previously let go of tens of thousands of employees in recent years, it anticipates fewer people will accept this latest buyout compared to earlier voluntary retirement programs.
As of June, Microsoft's workforce was at 223,000, a figure largely unchanged since 2022. The company has been investing heavily in AI and data center infrastructure, leading to budget constraints and workforce reductions. Other tech giants, such as Google and Meta, have also resorted to buyouts to streamline their personnel.
Microsoft emphasizes the importance of retaining employees who are engaged in the company's core problems, reflecting the trend among tech leaders who advocate for a faster pace of work and adaptation. Elon Musk, for instance, offered Twitter employees a choice between "extremely hardcore" employment or severance payments in 2022. Recently, a Google executive suggested a voluntary buyout package for employees not fully committed to AI.
Potential buyout recipients usually evaluate their financial situation, job market prospects, and the time required to secure new employment, or whether the package offers sufficient time to pivot their careers. Typically, buyouts target senior, higher-cost staff, offering more favorable terms than layoffs. Microsoft aims to retain top talent if employees opt for the buyout, offering additional support in such cases.
The company views buyouts as a means to adapt its workforce to evolving requirements.
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