Microsoft is offering voluntary redundancy to more than 60,000 employees globally, a move affecting over a quarter of its 223,000-strong workforce. The tech giant is redirecting resources into artificial intelligence, prompting the significant reduction in personnel.
The voluntary exit offer is available to staff at vice-president level and below, though certain employee groups, including those in data centers, sales, and marketing, are excluded. Amy Coleman, Microsoft's head of HR, stated in a memo that the offer is part of the company's evolving approach to change, aiming to create greater flexibility and provide employees opportunities to shape their future.
This is the second voluntary buyout Microsoft has extended to employees this year. In April, approximately 7% of its U.S. workforce was reportedly offered early retirement options, with about 30% of eligible employees accepting the plan.
The company's decision comes as major technology firms continue to invest heavily in AI. Concerns are mounting regarding the potential impact of artificial intelligence on employment across the sector. Other tech companies have also implemented workforce reductions, including Netflix, which is reportedly cutting around 1,000 jobs, and eBay, which laid off 1,000 employees this month in addition to an earlier round of 800. In May, Meta, the parent company of Facebook, laid off approximately 10% of its global workforce, impacting about 8,000 employees. Uber announced in September that it would reduce its staff by about 10%, affecting an estimated 3,000 employees, while Amazon announced 16,000 global job cuts in January.
Collectively, Amazon, Microsoft, Alphabet, and Meta are projected to invest substantial amounts in AI data centers, chips, and computing infrastructure this year. Microsoft is expected to report its quarterly earnings this week.