Microsoft extends buyout offer to 60,000 staff

Microsoft is offering voluntary buyouts to approximately 60,000 employees. The software company announced the new exit program on Monday for workers in the U.S., Canada, India, and the United Kingdom. The offer targets staff at experience level 70 and below. A person familiar with the internal matter stated that this group represents about 27% of the company’s total workforce of 223,000 people.

The move comes as Microsoft balances high spending on artificial intelligence infrastructure with capital efficiency. The company has increased data center spending to meet computing demands for cloud services provided to clients like Anthropic and OpenAI. Capital expenditures for the September quarter are expected to exceed $50 billion, a significant jump from the $34.9 billion spent in the same period a year earlier.

Microsoft previously announced a voluntary retirement program in April that was available to about 7% of U.S. employees. In July, the company also announced plans to lay off 4,800 workers. Amy Coleman, Microsoft’s executive vice president and chief people officer, wrote in a memo to employees that the new offer creates greater flexibility. She noted that the initiative builds on lessons learned from the earlier retirement program.

The company is shifting its business model to charge clients based on actual AI usage. Microsoft has equipped programmers, sales teams, and supply chain workers with AI tools, citing noticeable results. The firm aims to retain the specific talent needed for new growth opportunities while maintaining financial stability. In the second quarter, Microsoft reported $19.64 billion in positive free cash flow, though that figure dropped 23% year over year.

Some marketing, sales, and engineering teams have opted out of the new buyout offer. Employees must decide whether to accept the package by early December. Those who participate will leave the company on December 31. The new initiative extends the eligibility to the vice president level, whereas the earlier retirement program was limited to the senior director level.

More than 30% of eligible staff accepted the previous voluntary retirement program, according to data released in July. Microsoft has not set a specific target number for this new round of exits. The company is scheduled to report its third-quarter financial results on Wednesday.

The buyout program affects a wide range of roles across four countries. The decision to proceed with the offer reflects an ongoing effort to adjust the workforce size in line with new operational demands. The final headcount reduction will be finalized at the end of the year.