Microsoft offers voluntary buyout plan to about 60,000 employees to adapt to the personnel restructuring in the AI era
The Block
2h ago
Ai Focus
Microsoft offers voluntary buyout packages to about 60,000 employees to cut costs and restructure the workforce. Eligible employees will receive emails with terms similar to the company's standard severance compensation packages.
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IT News on October 27th: Microsoft confirmed to tech media TechCrunch on Monday local time that the company is offering a voluntary severance package to approximately 60,000 employees. This move is Microsoft's latest initiative to cut costs and adjust its workforce structure in response to the era of artificial intelligence.

Microsoft's Chief Human Resources Officer, Amy Colman ( Amy Coleman ), sent a notification to employees regarding this buyout plan. IT Home noted that this notification was also published simultaneously on Microsoft's official website.

Notifications indicate that employees at the vice president level and below in teams from the United States, Canada, India, and the United Kingdom are eligible to apply. According to Bloomberg, the departments participating in this buyout plan include Xbox, Windows, Copilot, as well as the finance department. Some employees in positions such as data center, sales, and marketing are not included in this scope.

The notice sent to employees stated: "The voluntary resignation program is an important part of our approach to adjustment and change: it brings greater flexibility and, where possible, provides more options for employees to plan their next stage of career paths. For those eligible employees who have already considered leaving the company for further development, this program offers a new option, allowing them to make the transition with the support of the company."

Microsoft stated that eligible employees will receive an email on Monday containing a link to the details of the voluntary resignation package. The terms related to this buyout are similar to Microsoft's standard severance compensation packages.

The notification mentions: "The voluntary resignation program is a new attempt for us. We will learn from it. At the same time, we will continue to help employees focus on their core work, learn new skills, and assist them in finding new positions within Microsoft at the appropriate time. There is no one-size-fits-all solution that applies to all teams and employees. By doing so, we continue to create opportunities for growth and value realization for our internal staff while meeting the needs of different businesses."

With the voluntary buyout scheme, Microsoft can reduce its workforce while avoiding the severe impact of large-scale layoffs. This is not the first time Microsoft has introduced such a buyout program. Earlier this year, Microsoft offered a buyout option to employees who had reached retirement age, and more than 30% of the approximately 8,750 eligible employees chose to accept it.

As of the end of June, Microsoft had a total of 223,000 employees.

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