60,000 Microsoft employees offered voluntary buyouts as AI buildout costs bite
Microsoft is offering buyouts to around 60,000 members of its workforce as it looks to balance the books amid a ramp-up in AI data center spending.
Microsoft has extended a voluntary buyout opportunity to approximately 60,000 employees across the United States, Canada, India, and the United Kingdom. These employees, accounting for around 27% of the company's total workforce of 223,000, have an experience level of 70 or lower. This latest move follows a similar program in April, which offered voluntary retirement to 7% of the U.S.-based workforce.
The company is undergoing an Xbox reset, including job cuts and studio closures, and is heavily investing in AI data centers. Microsoft has spent over $1 trillion on AI infrastructure since 2023, with projections that AI data center investment will reach $32 trillion by 2050. The company's decision to cut salaries appears to be influenced by these AI data center plans.
The voluntary exit offer was announced on Microsoft's blog by Amy Coleman, who emphasized the company's commitment to flexibility and providing employees with options for their next career steps.
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