Microsoft opens buyout option for 60,000 employees

Microsoft employees in the United States, Canada, India, and the United Kingdom can now accept voluntary exit packages if they work at experience level 70 or below. The software giant announced the program on Monday. It is the latest step in a push to balance rising artificial intelligence infrastructure costs with capital efficiency.

According to a person familiar with the matter who requested anonymity, approximately 60,000 workers are eligible for the offer. This group represents roughly 27% of Microsoft's total workforce, which stands at 223,000 people. The eligibility threshold extends higher than the company's previous voluntary retirement program, which capped participation at the senior director level.

The buyout comes as Microsoft ramps up spending on data centers to meet demand from clients like Anthropic and OpenAI. Capital expenditures for the September quarter are expected to exceed $50 billion, up from $34.9 billion in the same period last year. In July, the company revealed plans to lay off 4,800 employees. Before that, it launched a voluntary retirement program in April that 7% of U.S. staff could join.

Amy Coleman, the company's executive vice president and chief people officer, wrote in a memo to employees that the new offer creates greater flexibility. She stated that the program builds on lessons learned from the earlier retirement initiative. The goal is to allow employees to shape their next steps while the company adjusts its staffing model.

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. This transition aims to secure the right talent for new growth opportunities without weakening the company's financial position. In the second quarter, Microsoft reported $19.64 billion in positive free cash flow, a 23% decline year over year, while rivals Alphabet and Amazon reported negative figures for the same period.

Employees must decide whether to accept the buyout by early December. Those who participate will depart on December 31. Some marketing, sales, and engineering teams have opted out of the new offer. Microsoft did not set a specific target for how many workers would accept the package, unlike the previous program where more than 30% of eligible staff participated.

The company is scheduled to release its third-quarter financial results on Wednesday.