Microsoft is offering voluntary buyouts to about 60,000 employees, a quarter of the company
Microsoft recently announced a new voluntary exit offer for employees at level 70 and below in certain countries. Sources told CNBC that this group includes about 60,000 workers, a substantial increase in scope compared with the buyout offers that began in April. Read Entire Article
Microsoft plans to offer buyouts to approximately 60,000 employees as part of a cost-cutting initiative driven by the growing use of artificial intelligence, according to recent reports. This move represents the latest in a series of workforce reductions undertaken by the tech giant this year. In April, Microsoft announced voluntary retirement options for about 7% of its US workforce, totaling around 125,000 employees. Globally, Microsoft employs approximately 223,000 individuals.
The buyout offer will be extended to several of Microsoft's prominent divisions, such as Xbox, Windows, and Copilot, its AI-driven platform. However, employees in certain areas, including cybersecurity, datacenters, and marketing, will not be eligible for the program. Microsoft's executive vice-president and chief people officer, Amy Coleman, explained that the offer provides eligible staff with a new option for transitioning outside the company with appropriate support.
Additionally, it enables participating organizations to adjust their workforce according to evolving requirements.
The company has not provided further details about the specifics of the buyout offer. Microsoft is not the only tech firm to face workforce reduction challenges due to the surge in AI adoption and increased investments in the technology this year. Meta, the parent company of Facebook and Instagram, recently announced plans to cut 10% of its workforce, equivalent to around 8,000 employees, in an effort to enhance efficiency.
Amazon has also conducted several workforce reductions, most recently in its retail division. In June, Oracle cut its workforce by nearly 13%, eliminating 21,000 jobs, attributed to AI advancements. However, it remains uncertain whether these workforce reduction strategies have led to improved efficiency, and some companies, including Meta, have revised their layoff plans.
A senior Microsoft executive, Ryan Roslansky, recently criticized "AI slop" in the workforce on social media, and a recent working paper from the National Bureau of Economic Research revealed that 90% of the 9,000 senior executives surveyed from various countries believed that AI had yet to contribute to increased productivity within their organizations.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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