Microsoft is offering voluntary exit packages to about 60,000 employees, roughly a quarter of its workforce, as it cuts costs while spending heavily on artificial intelligence, The Hindu reported. The company confirmed the offer on Monday.
Who is eligible
Staff on select teams in the United States, Canada, India and Britain, at vice-president level and below, can take the offer, a Microsoft spokesperson said. Some groups, including employees working on data centres, sales and marketing, are excluded.
"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," chief people officer Amy Coleman told employees in a memo.
Microsoft had 2,23,000 employees worldwide at the end of June, down from 2,28,000 at the end of 2025, according to regulatory filings. About 27% of its staff are eligible for the new offer.
The second offer this year
In April, Microsoft reportedly offered about 7% of its US workforce the option to retire early, and around 30% of those eligible took it, according to CNBC. In July, it cut nearly 5,000 jobs, many of them in its Xbox gaming division.
Why it matters: AI spending and job cuts
Amazon, Microsoft, Alphabet and Meta are together on track to spend about $700 billion on AI data centres, chips and computing this year. Microsoft said it spent $41 billion between April and June.
The same period has brought job cuts across the industry, according to The Hindu:
- Amazon announced 16,000 job cuts in January.
- Meta cut about 10% of its workforce, around 8,000 people, in May.
- Uber said in September it would cut about 10% of its staff.
- eBay laid off 1,000 employees this month, and Netflix is reportedly cutting about 1,000 jobs.
What next
Microsoft is due to report its quarterly results later this week. The company has not said how many of the eligible employees are in India.
