Microsoft Offers Voluntary Exits to 60,000 Staff Amid AI Push

Microsoft has announced a voluntary exit program for approximately 60,000 employees globally, including eligible staff in India, the US, the UK, and Canada. The technology giant stated the initiative aims to control costs while simultaneously increasing its investment in artificial intelligence (AI). The program is open to employees at vice-president level and below within selected teams across the four countries, although specific groups, such as certain employees working in data centers, sales, and marketing, are excluded.

Eligible employees in India will have until December 1 to decide whether to accept the offer. The voluntary exit package is understood to include one month’s base salary for every completed year of service, along with health insurance and career transition support. Amy Coleman, Microsoft’s executive vice-president and chief people officer, stated that the program would provide employees with support if they chose to leave, while also giving participating organizations another way to respond to evolving requirements. The company noted that eligibility would depend on individual business priorities, customer commitments, and workforce needs, with eligible employees receiving emails detailing the terms.

This latest initiative marks Microsoft’s second voluntary exit or retirement offer this year; in April, the company reportedly offered early retirement to about 7% of its US workforce, with approximately 30% of eligible employees taking up that offer. Microsoft had 223,000 employees globally at the end of June, and around 27% of its workforce is understood to be eligible for the current program. The move comes as Microsoft commits substantial resources to AI and cloud infrastructure, including a pledged $20.5 billion investment in India between 2025 and 2029, covering cloud and AI infrastructure, skills development, and operations. A Microsoft spokesperson also affirmed the company remains on track to equip 20 million people in India with AI skills by 2030.

What to watch: Microsoft is expected to report its quarterly earnings later this week.

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