SAN FRANCISCO (AFP): Microsoft is offering voluntary exit packages to around 60,000 employees as the technology giant seeks to control costs while increasing investment in artificial intelligence (AI).
The offer covers eligible employees at vice-president level and below in selected teams across the United States, Canada, India and Britain. Some employees working in data centres, sales and marketing are excluded.
Amy Coleman, Microsoft’s executive vice-president and chief people officer, said the programme would provide greater flexibility and give employees more options for their future careers.
This is Microsoft’s second voluntary buyout programme this year. In April, the company reportedly offered early retirement to around seven per cent of its US workforce. About 30 per cent of eligible employees accepted the offer, according to CNBC.
Microsoft had 223,000 employees worldwide at the end of June, down from 228,000 at the end of 2025, according to regulatory filings.
The latest move comes as major technology companies increase spending on AI infrastructure, raising concerns about the technology’s impact on jobs. Anthropic chief executive Dario Amodei has also warned of significant job losses linked to AI.
Other technology companies have also reduced their workforces. Netflix reportedly plans to cut around 1,000 jobs, while eBay laid off 1,000 employees earlier this month. Meta cut around 8,000 jobs in May, and Amazon announced 16,000 global job cuts in January. Uber also announced plans to reduce its workforce by around 10 per cent.
Microsoft cut nearly 5,000 jobs in July, with much of the reduction affecting its Xbox gaming division.
Meanwhile, Amazon, Microsoft, Alphabet and Meta are collectively expected to spend around $700 billion on AI data centres, chips and computing infrastructure.
Microsoft spent $41 billion between April and June and expected spending to reach $50 billion in the following quarter. However, it lowered its forecast for total spending in 2026 to $175 billion from an earlier estimate of $190 billion.
Chief financial officer Amy Hood said around two-thirds of the company’s spending goes towards short-lived assets, particularly chips, to meet demand for both AI and non-AI infrastructure.
The company is expected to report its quarterly earnings later this week.
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