Economy

Microsoft wants up to 60,000 workers to quit as it pours money into AI

The time-limited offer comes with severance-like pay and no announced deadline yet.

Stock photo. Photo by kate.sade on Unsplash

Microsoft is offering buyouts to about 60,000 employees, roughly a quarter of its workforce, as it spends heavily on artificial intelligence and looks to cut costs.

The company announced the "Voluntary Exit Offer" on Monday, Oct. 26, in a message to employees from Amy Coleman, Microsoft's executive vice president and chief people officer. Microsoft's own post does not give a head count. The 60,000 figure comes from Bloomberg and Business Insider, and the Seattle Times reported it after obtaining a company memo.

Who can take it

The offer covers employees at level 70 and below, which reports describe as vice president and below, on participating teams in the United States, Canada, India, and the United Kingdom. Not every team is in. "Some organizations are providing the Voluntary Exit Offer, and some are not," Coleman wrote. Reports say some data center, sales, and marketing staff are excluded.

Microsoft calls it "a time-limited, voluntary program" with "financial support and career planning resources." A company spokesperson told Bloomberg the package is similar to a standard severance offer. Eligible workers were told they would get an email with their offer details within hours.

What we don't know yet

Microsoft has not said how long workers have to decide, how much the packages pay, or what happens if too few people accept. A buyout is not a layoff: no one has to take it. But companies often use buyouts to shrink before deciding whether cuts are needed. A spokesperson told Bloomberg the company expects fewer people to take this offer than took its earlier one and may still try to keep top performers.

That earlier offer, a retirement buyout this summer, went to about 8,750 workers, and more than 30% accepted, according to Bloomberg.

Microsoft had about 223,000 employees at the end of June. It joins a growing list of large employers trimming staff while pouring money into AI, including American Express and Barclays.

If you are weighing a buyout or severance offer, read the terms closely before you sign. Many packages ask you to give up legal claims against the company. Our guide to the warning signs of a layoff explains how to prepare.