October 27, 08:44TechCentral

Microsoft offers voluntary severance packages to 60,000 employees amid rising AI costs

On Monday, Microsoft announced the provision of voluntary separation packages to approximately 60,000 employees. This accounts for more than a quarter of the company's global workforce, and the measure is aimed at reducing costs and funding large-scale investments in artificial intelligence.

According to a source familiar with the matter who wished to remain anonymous, employees worldwide working in divisions such as AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices may qualify for this program. Groups such as marketing, commercial business, and security are excluded.

Chief People Officer Amy Coleman mentioned in a memo that this offer provides employees considering a future outside the company with an opportunity to transition now with support. Furthermore, it offers participating organizations another way to adapt their personnel to changing needs.

Like other major technology corporations, Microsoft is spending hundreds of billions of dollars on data centers and chips for AI, which has drawn close attention from investors regarding whether the resulting revenues will justify such massive expenditures. The company, which will publish its first fiscal quarter results after markets close on Wednesday, forecasts capital expenditures of $175 billion for calendar year 2026.

According to annual reports, as of June 30, 2026, Microsoft had 223,000 full-time employees worldwide. It was clarified that this offer will be available to eligible employees in participating teams in Canada, India, the UK, and the US, provided their employment level is 70 or lower. These levels are internal job categories at Microsoft. The company described the program as temporary and voluntary, based on lessons learned from a previous voluntary retirement program, and stated that eligible employees would receive details within a few hours.

Voluntary Severance Packages

Earlier this year, Microsoft offered voluntary severance packages to about 7% of its American staff, totaling approximately 9,000 people. In July, the company announced a reduction of 4,800 jobs, or about 2.1% of its global workforce, as part of the reorganization of the Xbox business and the sale of up to five studios to increase profits after many years of intensive investment in that division.

Microsoft shares, which rose by about 10% this year, increased by about 1% on Monday.

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Microsoft offers severance packages to about 60,000 employees to cut costs and fund AI

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www.aajtak.inOctober 26, 22:23

Microsoft offers voluntary layoff package to 60 thousand employees amid rising AI costs

Microsoft, a major technology company, has offered a Voluntary Buyout Programme to its employees in four countries, including India. Under this initiative, eligible workers will have the option to leave the company with support from Microsoft.

According to news agency Reuters, this program could cover around 60 thousand employees, which is more than a quarter of the company's total global workforce. Microsoft has taken this step during a period of active investment growth in the field of artificial intelligence (AI).

The company aims to simultaneously control rising costs and adapt its staffing levels and organizational structure to changing market needs.

According to information from Microsoft, the voluntary buyout program will operate in India, the USA, the UK, and Canada. It will provide an opportunity for employees meeting certain criteria in teams at level 70 and below to leave the company. This program has a limited duration. The company announced that detailed information about this offer would be provided to the relevant employees within hours of the announcement.

A source familiar with the situation told Reuters that the program will extend to personnel in many divisions, such as AI Experience, Copilot, Finance, Human Resources, Xbox, and Windows + Devices. However, marketing, commercial business, and security teams are excluded from this program.

In a memo sent to employees, Microsoft's Head of Human Resources, Amy Coleman, explained the motives behind this program. She noted that the offer provides eligible employees with an alternative option for finding future opportunities outside the company, allowing them to make this transition with Microsoft's support. Furthermore, this scheme serves as an additional way for relevant departments to streamline their staff and workforce in line with their evolving requirements.

Microsoft emphasized that this is a temporary voluntary program developed based on experience gained from implementing a previously introduced voluntary retirement program.

This initiative comes against the backdrop of large global technology corporations investing huge sums in AI-related infrastructure, including data center and advanced chip costs. Microsoft forecasts capital expenditures of $175 billion for the calendar year 2026. Nevertheless, investors are questioning what return such massive investments will bring the company in the future.

The company plans to announce its first-quarter financial results after the stock market closes on Wednesday. Investors will closely monitor these results to understand the contribution of Microsoft's AI investments to business growth and profitability.

Microsoft has previously taken several measures to reduce its workforce. This year, the company announced another voluntary layoff program that affected about 9 thousand employees in the USA, accounting for approximately 7 percent of the American staff. Moreover, in July, Microsoft announced a plan to eliminate 4,800 jobs, which corresponded to approximately 2.1 percent of its global workforce. This decision was made as part of the restructuring of the Xbox gaming business and a plan to sell five studios. The goal of these changes was to achieve better returns on the significant investments made in the gaming business over many years.

According to Microsoft's annual report, as of June 30, 2026, the company had 223,000 employees worldwide.

Following the news of the voluntary buyout program, Microsoft's shares rose by about one percent on Monday. This year, the company's shares have already increased by about 10 percent. According to Reuters, the news of the new layoff offer was first published by Business Insider.

The company's decision indicates that, on one hand, Microsoft continues to invest heavily in AI technology and infrastructure, while on the other hand, it is taking steps to reorganize its personnel in line with changing business needs.

g1.globo.comOctober 26, 21:00

Microsoft proposes voluntary redundancy plan for 60,000 employees in four nations

Microsoft announced a new voluntary redundancy program targeting approximately 60,000 employees located in the United States, Canada, India, and the United Kingdom. The company disclosed this information to AFP on Monday, the 26th, six months after presenting a similar initial proposal.

This new package of offers applies only to certain units of the corporation and is described as another strategy by the group to adjust its workforce to current demand changes. Amy Coleman, Director of Human Resources, informed employees that this measure aims to 'adapt its staff to evolving needs.'

The proposal is available to employees up to the vice president level, with exceptions for certain professionals in the sales, marketing, and data center sectors. Those who choose to accept the offer and leave the company will have access to conditions equivalent to standard severance compensation.

Regarding the first plan, which was aimed at employees whose combined age and length of service reached at least 70 years, the company reported that about one-third of those eligible joined in July. At that time, it was clarified that such positions were not being replaced by Artificial Intelligence.

According to the company's annual report, there was a reduction of 5,000 employees in the last twelve months, ending on June 30, a rate not seen since 2016. Furthermore, Microsoft plans to increase its investments to over US$ 50 billion (equivalent to BRL 274.9 billion) during the next period, with results from the July to September quarter to be announced on Wednesday.