Microsoft Offers Buyouts to Nearly 60,000 Employees Amid Economic Struggles in Seattle
The tech giant's voluntary exit offer impacts a quarter of its global workforce as the company aims to control costs and fund AI investments, coinciding with Seattle's ongoing economic challenges.
Microsoft has offered voluntary buyouts to approximately 60,000 employees, representing more than a quarter of its global workforce. The offer, extended on Monday, aims to manage costs and redirect funds toward the company's artificial intelligence initiatives. Employees in finance, human resources, Copilot, AI experiences, Xbox, and Windows + Devices are eligible, according to a source close to the matter.
Staffers eligible for the voluntary exit offer include those at the vice president level and below in the US, Canada, India, and the UK. The standard severance package will be provided, with decisions to be made by December. Chief People Officer Amy Coleman stated in a memo that the offer provides employees considering a future outside the company an option to transition with support, while also allowing participating organizations to adapt to changing needs.
Microsoft, which has 223,000 full-time employees globally as of June 30, anticipates an acceptance rate of three to five percent, equating to fewer than 3,000 employees. The company's stock price saw a slight increase following the announcement. This move precedes the company's first-quarter financial results for fiscal year 2027, which covers July 1 through September 30.
This is not the first instance of workforce adjustments at Microsoft this year. In an earlier period, the company offered voluntary buyouts to about seven percent of its US workforce, totaling approximately 9,000 employees. Additionally, in July, Microsoft announced plans to cut 4,800 jobs worldwide.
The timing of these buyouts coincides with ongoing economic difficulties in Seattle, where Microsoft is a major employer. The city is grappling with a business exodus, job losses, public safety concerns, and affordability issues. The Seattle Metropolitan Chamber of Commerce's latest survey, released on October 13, indicated that 65 percent of respondents felt Seattle was losing positive momentum regarding public safety and quality of life, sentiments that were heightened during the summer's World Cup event.