Microsoft plans to offer voluntary severance packages to approximately 60,000 employees to cut costs associated with AI investments.
on October 27, according to Forbes, Microsoft announced on October 26 its plan to offer a voluntary severance package to approximately 60,000 eligible employees across the United States, Canada, India, and the United Kingdom, covering roughly 27% of the company's workforce. The initiative spans multiple departments including Copilot, Finance, Human Resources, and Xbox, but excludes senior management as well as specific marketing, commercial, and security teams.
Amy Coleman, Microsoft's Chief Human Resources Officer, stated that the company hopes to improve organizational flexibility and provide employees with more career options through this program. Employees are required to make their decision in December, with those who accept expected to depart by December 31.
This marks Microsoft's continued effort this year to further adjust its workforce structure. Earlier this year, the company offered an early retirement program to approximately 8,750 U.S. employees, which was accepted by about 30% of eligible staff. Should 30% of eligible employees opt into this voluntary severance package, the total number of departures would reach approximately 18,000.