Microsoft offers voluntary exit packages to 60,000 staff, with some Indian teams eligible

Microsoft is providing voluntary exit packages to approximately 60,000 employees across the United States, Canada, India, and Britain. This initiative is aimed at reducing costs while simultaneously investing heavily in artificial intelligence. According to a Microsoft spokesperson, staff members on select teams at vice president level and below within these countries are eligible for the offer. Notably, some groups of employees, including those working on data centers, sales, and marketing, are excluded from the program.

Amy Coleman, an executive vice president and chief people officer, conveyed the news to employees via a memo, describing the voluntary exit offer as a crucial aspect of Microsoft's evolving approach to change. The move represents the second voluntary buyout offer that Microsoft has provided to its employees this year, following a similar initiative in April.

In April, Microsoft reportedly extended the opportunity for employees to retire early, targeting around seven percent of its US workforce. Out of those eligible, roughly 30 percent opted for the voluntary retirement plan, according to CNBC. At the end of June, Microsoft employed 223,000 people globally, marking a slight decrease from 228,000 at the end of 2025, as reported in regulatory filings.

The company anticipates reporting its quarterly earnings later this week. As other major tech giants continue to pour substantial investments into AI-related infrastructure, concerns regarding the potential job impact of the technology persist. Industry experts, such as Anthropic CEO Dario Amodei, have cautioned about the possible mass job losses stemming from advancements in AI.

Notably, Netflix announced plans to lay off 6% of its global workforce, which amounts to around 1,000 jobs, as part of wider organizational changes. Earlier this month, auction site eBay announced the layoff of 1,000 employees, following a previous round of cuts that impacted 800 jobs earlier in the year. Meta, in May, laid off approximately 10% of its global workforce, affecting around 8,000 employees.

In April, Meta also announced the cancellation of plans to hire an additional 6,000 people and the reassignment of 7,000 employees to AI workflow-related roles.

Uber's ride-hailing platform laid off around 10% of its staff in September, impacting an estimated 3,000 or more employees. Later in January, Amazon disclosed that it would be cutting 16,000 jobs globally, affecting various departments and locations.

In July, Microsoft disclosed that it had reduced its total spending for 2026 to $175 billion, down from the previously reported $190 billion. Around two-thirds of the company's spending is allocated towards "short-lived assets," specifically chips, attributed to customer demand for both AI and non-AI infrastructure. During a call with analysts, CFO Amy Hood also mentioned that Microsoft is expected to increase its spending to $50 billion between July and September of 2026.