Microsoft opens voluntary exit window for 60,000 employees

Microsoft announced on Monday that it is extending voluntary exit offers to approximately 60,000 employees. The move aims to help the company manage the financial burden of its expanding artificial intelligence infrastructure while maintaining capital efficiency.

The offer is available to specific workers in the United States, Canada, India, and the United Kingdom. Eligibility is limited to those at experience level 70 or below. A person familiar with the internal matter stated that this group represents about 27% of Microsoft's total workforce of 223,000 people.

The company has increased spending on data centers to meet high demand for AI computing services, which it supplies to clients such as Anthropic and OpenAI. Microsoft reported in July that capital expenditures for the September quarter would exceed $50 billion. This figure marks a substantial increase from the $34.9 billion spent in the same quarter a year prior.

Financial pressure has driven previous workforce adjustments. In April, Microsoft introduced a voluntary retirement program that roughly 7% of U.S. employees were eligible to join. More than 30% of those eligible participated in that earlier initiative, according to data released in July. In July, the company also announced plans to lay off 4,800 employees.

Amy Coleman, Microsoft's executive vice president and chief people officer, described the new offer in a memo to staff. She stated that the program creates greater flexibility for employees to shape their careers and builds on lessons learned from the earlier retirement program.

Microsoft is shifting its business model to charge clients based on actual AI usage. The company has equipped programmers, sales teams, and supply chain workers with AI tools. While some marketing, sales, and engineering teams have opted out of the new buyout, the company has not set a specific participation target. The new offer extends to the vice president level, whereas the previous retirement program capped eligibility at senior director level 67.

Employees must decide whether to accept the offer by early December. Those who participate will leave the company on December 31. Microsoft is scheduled to report its third-quarter financial results on Wednesday.