Microsoft opens voluntary exit offers as AI-related capital spending surges

CNBC estimates 60,000 Microsoft employees are eligible for buyouts

Microsoft said Monday that it is offering voluntary exit offers to tens of thousands of eligible employees in Canada, India, Britain and the United States as the company works to reduce workforce costs amid a surge in spending on artificial intelligence capabilities. The program gives workers at level 70 and below an option to leave the company with support while their organizations adjust staffing to changing needs.

Microsoft Executive Vice President and Chief People Officer Amy Coleman announced the offers in a company blog post. Coleman wrote, “This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” and “It also gives participating organizations another way to adapt their workforce to changing needs.”

The offers apply to employees at “level 70” and below. CNBC reported that the group is estimated to include 60,000 people, or about 27% of Microsoft’s total workforce of 223,000. The estimate describes the pool of eligible employees rather than a confirmed number of departures.

Coleman said the buyouts reflect “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.” Her description emphasized flexibility for employees and a way for participating organizations to adapt their workforces to changing needs.

Microsoft offered its first voluntary retirement program earlier this year. The broader exit offers come as planned capital spending, driven largely by AI, surged to nearly $190 billion this year.

Microsoft also announced job eliminations in July. The company said it was eliminating around 4,800 positions, about 2.1% of its global workforce, with the changes falling mostly within its Commercial and Xbox organizations.

The voluntary program arrives amid workforce changes at other technology companies. Amazon has laid off about 30,000 employees in many divisions in favor of AI tools.

Meta, the parent company of Facebook and Instagram, announced in April that it planned to lay off 10% of its workforce worldwide, about 8,000 people, to focus on AI. Snap Inc., the parent company of Snapchat, likewise announced in April that it was cutting up to 16% of its workforce worldwide amid plans to use artificial intelligence tools for many tasks.

The announcements place Microsoft alongside Amazon, Meta and Snap as technology companies adjusting staffing while citing AI investment, tools or work priorities. Microsoft’s current program is voluntary, with Coleman saying eligible employees can receive support for a transition outside the company.