Microsoft extends exit offers to 60,000

Microsoft employees in the United States, Canada, India, and the United Kingdom now face a new option to leave the company voluntarily. The software maker announced Monday that it is extending buyout packages to staff at experience level 70 or below. This group includes roles typically below the vice president level.

Approximately 60,000 individuals are eligible for the offer. That figure represents roughly 27% of Microsoft's total workforce of 223,000 people, according to a person familiar with the matter. The individual spoke on condition of anonymity because the discussions are internal.

The move aims to balance the company's aggressive spending on artificial intelligence with a desire for capital efficiency. Microsoft has been increasing expenditures on data centers to meet high computing demand for cloud services provided to partners such as Anthropic and OpenAI. Capital spending for the September quarter is projected to exceed $50 billion, a sharp rise from the $34.9 billion recorded in the same period last year.

This financial strain has prompted earlier workforce adjustments. In April, the company introduced a voluntary retirement program for U.S. staff. In July, it announced plans to lay off 4,800 employees. More than 30% of those eligible for the April program accepted the offer, according to figures released in July.

Amy Coleman, Microsoft's executive vice president and chief people officer, addressed the staff in a memo. "The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," she wrote. Coleman noted that the current initiative builds on lessons learned from the earlier retirement program.

Employees have until early December to decide whether to accept the buyout. Those who participate will depart the company on December 31. Some marketing, sales, and engineering teams have opted out of the program, the source said. Microsoft has not set a specific target for the number of departures this time.

The company is currently shifting its business model to charge clients based on actual AI usage. It has also equipped programmers and supply chain workers with AI tools. Microsoft reported positive free cash flow of $19.64 billion in the second quarter, a 23% decrease year over year, while rivals Alphabet and Amazon reported negative figures. Microsoft is scheduled to release third-quarter results on Wednesday.