Microsoft is offering voluntary buyouts to approximately 60,000 employees, or about a quarter of its workforce, as part of a strategy to manage headcount without resorting to layoffs. Eligible staff in the U.S., Canada, India, and the UK at the vice president level and below will receive a standard severance package and have until early December to decide. Chief People Officer Amy Coleman stated the move builds on a previous voluntary retirement program.
Multiple divisions, including gaming, Windows, Copilot, HR, and finance, are fully participating, while AI, legal, and cloud teams are partially involved. Marketing, commercial business, and security are not included. This initiative follows waves of layoffs since May 2025, including 15,000 cuts last year.
The company aims to create a flatter, more agile structure amid ballooning AI infrastructure costs, with plans to spend $190 billion on custom chips and data centers in 2025. While reducing outdated roles, Microsoft emphasizes reskilling and relocation, maintaining a relatively flat overall headcount. President Brad Smith noted the Redmond workforce remains stable despite changes, crediting reskilling and new hiring.
Source: Hacker News · Summarized by HeadlinesBriefing