Microsoft offers buyouts to 60,000 workers as AI reshapes workforce

Microsoft is offering buyouts to about 60,000 employees as the software giant seeks to cut costs and reshape its workforce, Bloomberg News reported Monday.

Employees at the vice president level and below on select teams in the US, Canada, India and the UK are eligible, though some data center, sales and marketing staff are excluded. The package includes benefits similar to a standard severance offer, according to a company spokesperson.

Microsoft had 223,000 employees at the end of June, with headcount largely unchanged since 2022. In July, more than 30% of roughly 8,750 employees eligible for a separate retirement-age buyout accepted the offer. The company expects fewer employees to take up the latest program, the spokesperson told Bloomberg.

The buyouts come as Microsoft ramps up investment in AI infrastructure while seeking to manage costs elsewhere. Other major technology companies, including Alphabet and Meta Platforms, have also offered voluntary exits or reduced headcount as they adjust their workforces.

Chief People Officer Amy Coleman said the program gives employees considering opportunities outside Microsoft a chance to leave with support and gives business units more flexibility to adapt staffing to changing needs. Microsoft may seek to retain top talent even if employees accept the offer, the spokesperson said.