Microsoft to offer buyouts to 60,000 workers in new cost cut
Staff will receive benefits similar to a standard severance package, a company spokesperson says
Microsoft plans to provide buyouts to approximately 60,000 employees, which constitutes around a quarter of its total workforce. This cost-cutting measure is part of the company's strategy to transition its workforce into the era of artificial intelligence. Eligible workers, held at a vice president level and below, will receive benefits similar to standard severance packages.
Divisions like Xbox, Windows, Copilot, and finance are actively participating in the offer. However, some pools of employees, including those in data centers, sales, marketing, cybersecurity, and quantum computing, are not eligible.
Microsoft's chief people officer, Amy Coleman, stated that the offer grants eligible employees a choice to transition out of the company with support. This is Microsoft's latest wave of workforce reductions, following previous buyouts for retirement-age employees and a voluntary retirement program that saw over 30% of eligible participants accept.
The company's headcount has remained relatively stable since 2022, a period marked by significant investments in AI and data centers. Microsoft anticipates that fewer employees will accept this latest offer compared to the previous voluntary retirement program.
The financial results of Microsoft are expected to be released on Wednesday, and investors will closely examine whether the heavy spending on AI is yielding positive outcomes. Microsoft's shares saw a slight increase of about 1% in New York trading. Other tech giants, such as Google and Meta Platforms, have also implemented voluntary buyouts to adapt to the evolving landscape of the industry, particularly in the realm of AI and data center infrastructure.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
