Microsoft offers voluntary exit packages to 60,000 staff

Why This Matters

Key context: <p>Microsoft is offering voluntary buyouts to about 60,000 employees, the company said on Monday, roughly a quarter of its workforce, as the tech giant seeks to cut costs while pouring money into artificial intelligence.</p> <p>Staff on select teams in the United States, Canada, India and Britain at vice president level and below will be eligible, a Microsoft spokesperson said, while some groups of employees, including some working on data centres, sales and marketing, are excluded.</p> <p>“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” Amy Coleman, an executive vice president and chief people officer, told employees in a memo.</p> <p>It’s the second voluntary buyout offer that Microsoft has offered employees this year.</p> <p>In April, the company reportedly offered around seven per cent of its US workforce the option to retire early.</p> <p>Around 30pcc of those eligible took the voluntary retirement plan, according to <em>CNBC.</em></p> <p>Microsoft had 223,000 employees globally at the end of June, down from 228,000 at the end of 2025, according to regulatory filings.</p> <p>Around 27pc of Microsoft’s workforce is eligible for the new buyout offer.</p> <p>The company is expected to report quarterly earnings later this week.</p> <h2><a id="tech-layoffs" href="#tech-layoffs" class="heading-permalink" aria-hidden="true" tabindex="-1" title="Permalink"></a>Tech layoffs</h2> <p>As major tech giants continue to spend heavily on AI-related investments, concerns persist about the impact of the technology on jobs.</p> <p>Even industry insiders, such as Anthropic CEO Dario Amodei, have warned of mass job losses.</p> <p>Netflix will reportedly cut around 6pc of its workforce, or 1,000 jobs, US media reported last week.</p> <p>Auction site eBay laid off 1,000 employees earlier this month, adding to a previous round earlier this year which impacted 800 jobs.</p> <p>In May, Meta <a href="https://www.dawn.com/news/1982013">laid off</a> around 10pc of its global workforce, impacting around 8,000 employees.</p> <p>In April, Meta also said it would cancel plans to hire an additional 6,000 people and also shift 7,000 other employees into AI workflow-related roles.</p> <p>Ride-hailing giant Uber said in September that it would lay off around 10pc of its staff, impacting an estimated 3,000 or more employees.</p> <p>And e-commerce giant Amazon <a href="https://www.dawn.com/news/1730062">announced</a> 16,000 global job cuts in January.</p> <p>Microsoft previously cut nearly 5,000 jobs in July that heavily targeted its <a href="https://www.dawn.com/news/2013405">Xbox gaming division</a>.</p> <p>Amazon, Microsoft, Alphabet and Meta are collectively on track to pour roughly $700 billion into AI data centres, chips and computing infrastructure this year alone.</p> <p>In July, Microsoft said it spent $41 billion overall between April and June and expected to increase its spending to $50 billion between July and September.</p> <p>However, the company also adjusted its forecast for total spending in the 2026 calendar year to $175 billion, down from $190 billion previously.</p> <p>Around two-thirds of its spending goes towards “short-lived assets,” specifically chips, due to customer demand for “both AI and non-AI infrastructure,” CFO Amy Hood said during a call with analysts.</p> This development from dawn.com highlights ongoing changes in the sector.