Microsoft offers voluntary buyouts to 60,000 employees amid AI infrastructure expansion and ongoing cost-cutting measures
Microsoft is offering voluntary buyouts to approximately 60,000 employees as part of its cost-cutting strategy.The initiative is aimed at workers in the U.S., Canada, India, and the United Kingdom at experience levels 70 and below.
This decision impacts about 27% of Microsoft’s total workforce of 223,000.
Increasing spending on data centres to meet high AI demand has pressured Microsoft’s finances.
Voluntary buyouts
The program follows an earlier voluntary retirement scheme that included around 7% of U.S. employees.
In April, Microsoft announced plans to lay off 4,800 employees.
Amy Coleman, Microsoft’s executive vice president and chief people officer, stated that this offer provides employees with flexibility for their future.
Microsoft recorded $19.64 billion in positive free cash flow in the second quarter, despite a 23% year-over-year decline.
Some marketing, sales, and engineering teams have opted not to participate in this buyout program.
Eligible employees need to make a decision by December, with departures scheduled for December 31.
Over 30% participation was noted in the previous voluntary retirement program for senior directors and below.
The current initiative extends eligibility to employees up to the vice president level.
Microsoft currently has no specific targets for acceptance rates related to these buyouts.
The third-quarter results will be released on Wednesday.
