Microsoft Offers 60,000 Staff Voluntary Exits as AI Spending Keeps Pressure on Costs
Updated
Updated · GeekWire · Oct 26
Microsoft Offers 60,000 Staff Voluntary Exits as AI Spending Keeps Pressure on Costs
3 articles · Updated · GeekWire · Oct 26
Summary
About 60,000 Microsoft employees — roughly a quarter of its 223,000 workforce — can take a new voluntary exit package, with some executives included and decisions due by early December.
The offer spans participating teams in the U.S., Canada, the U.K. and India, reaches up to internal level 70, and carries standard severance terms including pay, stock vesting, healthcare and career-transition support.
Microsoft said the program is meant to help teams adapt to changing business needs, not replace layoffs; sales, some engineering groups and some corporate functions are excluded, with business leaders deciding participation.
The move follows 4,800 July layoffs, hundreds more cuts in September and more than 15,000 job reductions in 2025, as Microsoft tries to contain operating costs while investing tens of billions in AI infrastructure.
An earlier spring retirement program drew about 30% of 8,750 eligible U.S. employees and led to a $900 million charge; Microsoft reports earnings Wednesday, when it may outline the new offer's cost.