Microsoft Offers Buyouts To 60,000, A Quarter Of Its Workforce

Microsoft is offering voluntary buyouts to more than a quarter of its staff, some 60,000 people, as it looks to defray the cost of AI and data center spending.

The buyouts will be offered to staffers at the vice president level or below in the U.S., Canada, India and the U.K. The Xbox, Windows, Copilot and finance divisions could be impacted.

Workers who accept the buyouts will receive benefits similar to a standard severance package. Employees have until early December to decide if they want to offer, and would exit Dec. 31 if they do.

Microsoft, which reports quarterly earnings Wednesday, has a total workforce of about 223,000.

“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,” Amy Coleman, Microsoft’s executive vice president and chief people officer, wrote in a memo to employees on the company’s blog. “This builds on what we learned earlier this year through the Voluntary Retirement Program.”

The tech giant has been chipping away at its staff and Coleman is referring to the company’s first-ever voluntary retirement program offered to around 7% of U.S. employees, or 8,700 people, at the senior director level and below. About 30% of eligible employees took the buyout. The company apparently heard from others who might have taken the deal if they’d been eligible, so it’s offering a redo.

Between 3% to 5% of tech world employees offered buyouts usually take them.

The in July, Microsoft announced plans to lay off 4,800 employees, including a large number at its Xbox gaming unit.

The company has projected 2025 capital spending at some $190 billion, mostly on AI-related data centers and chips.

“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. This builds on what we learned earlier this year through the Voluntary Retirement Program,” Coleman said.

Earlier today, the co-CEOS of the newly created Skydance also announced voluntary buyouts for staff.