Microsoft is offering a voluntary exit package to about 60,000 people — more than half of its workforce — to lower operating costs and free up resources for artificial intelligence investments, Reuters reports.
Who is affected and which divisions?
The program targets employees in the United States, Canada, India and the United Kingdom. Affected areas include Copilot and AI development teams, as well as finance, human resources, Xbox and Windows divisions. Microsoft said employees in marketing, commercial roles and cybersecurity are excluded from the reductions.
Voluntary nature and financial support
The company emphasized this is not a set of compulsory layoffs but a voluntary departure program supported by financial packages. Microsoft frames the measure as a way to increase cost efficiency and reallocate resources toward AI projects.
Background: AI investments
The move comes amid Microsoft’s large-scale AI spending plans: the company has projected $175 billion in capital expenditure through 2026, focused primarily on datacenters and AI chips.
Previous workforce actions
Microsoft employed more than 223,000 people at the end of June. Earlier this year the company offered a similar voluntary exit option to about 9,000 U.S. employees, and in July announced an additional 4,800 job eliminations.
