Microsoft opens buyout window for 60,000 staff
The tech giant is offering voluntary exit deals to employees in four countries to balance high AI infrastructure costs against capital efficiency.
By Abigail Brooks ·
Microsoft is offering buyouts to approximately 60,000 employees as it seeks to manage the high costs of building artificial intelligence infrastructure.
The company announced the voluntary exit offer on Monday. It is available to workers in the United States, Canada, India, and the United Kingdom. Eligibility extends to those at experience level 70 or below, a rank that includes vice presidents. A person familiar with the matter stated the offer affects about 27% of Microsoft's total workforce of 223,000.
Microsoft has increased spending on data centers to meet demand from clients such as Anthropic and OpenAI. Capital expenditures for the September quarter are expected to exceed $50 billion, up from $34.9 billion in the same period last year. This surge in spending has pressured the company's finances, leading to a voluntary retirement program in April and a layoff of 4,800 employees in July.
Amy Coleman, Microsoft's executive vice president and chief people officer, addressed the move in a memo to staff. She described the offer as a way to create greater flexibility for employees to shape their next chapter. Coleman noted that the initiative builds on lessons learned from the earlier voluntary retirement program, which more than 30% of eligible employees accepted.
The company is shifting its business model to charge clients based on actual AI usage. It has deployed AI tools across programming, sales, and supply chain teams. Some marketing, sales, and engineering groups have opted out of the new buyout. Employees must decide whether to participate in early December. Those who accept the offer will leave the company on December 31.
Microsoft reported $19.64 billion in positive free cash flow for the second quarter, a 23% decline from the previous year. The company is scheduled to report third-quarter results on Wednesday. Unlike the previous retirement program, which targeted senior directors and below, this offer extends to a higher level of the organizational hierarchy. The person familiar with the plan said Microsoft does not have a specific headcount target for the new initiative.
Source: CNBC
