Microsoft Extends Voluntary Exit Offers to 60,000 Workers

Microsoft announced on Monday that it is offering voluntary exit packages to approximately 60,000 employees in the U.S., Canada, India, and the United Kingdom. The offer is available to workers at experience level 70 or below. This group represents about 27% of the company’s total workforce, which stands at 223,000 people.

The move aims to balance the company’s heavy spending on artificial intelligence infrastructure with capital efficiency. Microsoft has increased its data center investments to meet high computing demand for services provided to partners like Anthropic and OpenAI. The company stated in July that capital expenditures for the September quarter would exceed $50 billion, a sharp rise from $34.9 billion in the same period a year ago.

This is the second major workforce adjustment for the year. In April, Microsoft launched a voluntary retirement program that roughly 7% of U.S. employees could access. In July, the company announced layoffs affecting 4,800 workers. More than 30% of eligible staff accepted the earlier retirement offer, according to figures released in July.

Amy Coleman, Microsoft’s executive vice president and chief people officer, addressed the staff in a memo. She stated that the new offer reflects an evolving approach to change by creating greater flexibility for employees. Coleman noted that this initiative builds on lessons learned from the earlier voluntary retirement program.

The new plan reaches higher levels of management than the previous one. While the April program was open to senior directors at level 67 and below, the current offer extends to the vice president level. A person familiar with the matter said Microsoft does not have a specific number of departures in mind for this round. Some marketing, sales, and engineering teams have opted out of the offer.

The company is also shifting its business model to charge clients based on actual AI usage. It has equipped programmers, sales staff, and supply chain workers with AI tools and has observed measurable results. In the second quarter, Microsoft reported $19.64 billion in positive free cash flow, down 23% year over year. This contrasts with cloud rivals Alphabet and Amazon, which both reported negative free cash flow during the same period.

Employees must decide whether to accept the buyout in early December. Those who participate will depart on December 31. Microsoft is scheduled to report its third-quarter financial results on Wednesday.