Microsoft offers buyouts to around 60,000 employees, reports say
The company aims to reduce costs and realign its workforce toward AI initiatives.
Quick Look
- Microsoft is offering voluntary buyout packages to roughly 60,000 employees across the U.S., Canada, India, and the U.K. as part of a strategic shift toward AI.
- The offer excludes specific departments like data centers, sales, and marketing.
AI-generated summary
Why It Matters
Microsoft previously offered buyouts to retirement-age employees earlier this year, with a 30% acceptance rate among eligible staff.
Microsoft is offering buyouts to around 60,000 employees, according to reports from Business Insider and Bloomberg. The move marks Microsoft’s latest efforts to cut costs and rework its workforce for AI.
Employees at the vice president level and below on select teams in the U.S., Canada, India, and the U.K. will be eligible, the reports say. Some employees, including those working in data centers, sales and marketing, are excluded.
Microsoft’s Chief People Officer Amy Coleman sent a note to employees on Monday about the buyouts.
“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” the note reads. “This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.”
Employees who choose the offer will receive benefits similar to those offered in a standard severance package, the reports say. Earlier this year, Microsoft offered buyouts to retirement-age employees, with more than 30% of the roughly 8,750 eligible workers accepting.
Microsoft did not immediately respond to TechCrunch’s request for comment.
Open Questions
- What is the specific financial target of these cost-cutting measures?
- How many employees are expected to accept the voluntary offer?
