Microsoft has announced a sweeping voluntary buyout program targeting approximately 60,000 employees, or about 27% of its global workforce, as the company accelerates its transition toward artificial intelligence (AI) and cloud infrastructure. The buyouts are being offered to staff at experience level 70 or below in the U.S., Canada, India, and the United Kingdom, according to company communications and reports from CNBC and Reuters.
This move comes as Microsoft ramps up capital expenditures to support the surging demand for AI computing, with spending for the September quarter expected to exceed $50 billion. The company is investing heavily in data centers and cloud services to power AI applications for clients such as Anthropic and OpenAI. The buyouts primarily affect roles in AI experiences, finance, human resources, and the Xbox division, with many positions in data analytics and administrative functions being reduced or replaced due to AI automation. However, roles in commercial business, security, and marketing are reportedly less impacted.
Microsoft’s executive vice president and chief people officer, Amy Coleman, described the voluntary exit offer as part of the company’s evolving approach to workforce changes, aiming to provide flexibility and allow employees to shape their next career steps. Employees eligible for the program must decide by early December, with departures scheduled for December 31.
The company has previously implemented workforce reductions, including a voluntary retirement program in April and layoffs in July. The current buyout initiative extends eligibility up to the vice president level, a broader reach than earlier programs. Microsoft has not set a specific target for the number of employees it hopes will accept the offer.
The restructuring reflects a broader trend in the tech industry, where companies are realigning their workforces and business models to capitalize on AI advancements. While Microsoft has seen its stock price rise following the announcement, the move underscores the challenges and uncertainties facing workers as automation and AI adoption accelerate across the sector.
Sources
Internal sources
- Microsoft Rises on Buyouts as It Retools Workforce for AI | Closing Bell
- Microsoft Targets 60,000 Jobs For Termination
- Proton slop