Microsoft redundancy offer hits 60,000 staff

Microsoft eyes voluntary departures as AI spending soars

The company had 223,000 staff at the end of June, with its overall headcount changing little since 2022.

During that period, Microsoft has significantly increased spending on AI technology and the data centres required to run it, putting greater pressure on its finances.

Under the proposed scheme, employees at vice-president level or below in the US, Canada, India and the UK will be able to apply. 

Xbox, Windows, Copilot and finance are among the divisions taking part, while some positions in data centres, sales, marketing, cybersecurity and quantum computing will not qualify.

Chief people officer Amy Coleman said the offer was aimed at workers considering a future beyond Microsoft, giving them the option to leave with support.

The initiative follows several rounds of redundancies and a voluntary retirement scheme launched in July for approximately 8,750 employees. 

More than 30% of those eligible took up the earlier offer, although Microsoft anticipates a lower response to the latest programme.

The company is due to publish its financial results on Wednesday, with investors keen to see whether its substantial investment in AI is beginning to pay off.