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Microsoft to Offer Buyouts to 60,000 Workers in New Cost Cut

Microsoft is offering voluntary buyouts to roughly 60,000 employees, representing about a quarter of its global workforce, as part of a sweeping cost-reduction effort to fund massive investments in artificial intelligence. The restructuring applies to workers in the United States, Canada, the United Kingdom, and India. Affected staff who accept the deal will leave on December 31 and receive benefits matching a standard severance package, which includes a minimum of eight weeks of pay in the United States. The cuts follow an earlier reduction of 4,800 jobs.

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  • ✓ Microsoft is offering voluntary buyouts to approximately 60,000 employees.
  • ✓ The targeted headcount represents roughly a quarter of the company's total workforce.
  • ✓ Employees who accept the buyout package will leave on December 31.
  • ✓ The buyout package matches standard severance, including at least eight weeks of pay in the United States.
🛡️ Source Corroboration: 21 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Microsoft announced a sweeping voluntary buyout program targeting 60,000 employees.

Live updates

  1. Microsoft Offers Buyouts to 60,000 Workers

    Microsoft is offering voluntary buyouts to roughly 60,000 employees, representing about a quarter of its global workforce, as part of a sweeping cost-reduction effort to fund massive investments in artificial intelligence. The restructuring applies to workers in the United States, Canada, the United Kingdom, and India. Affected staff who accept the deal will leave on December 31 and receive benefits matching a standard severance package, which includes a minimum of eight weeks of pay in the United States. The cuts follow an earlier reduction of 4,800 jobs.

    Why it matters

    The technology giant is aggressively shifting capital toward artificial intelligence infrastructure as yearly spending climbs toward $175 billion. This workforce reduction highlights the growing pressure on tech companies to trim traditional operating expenses to support expensive AI projects. While voluntary buyouts are currently on the table, leadership has indicated that additional layoffs remain possible.

    What is confirmed

    • Microsoft is offering voluntary buyouts to approximately 60,000 employees.
    • The targeted headcount represents roughly a quarter of the company's total workforce.
    • Employees who accept the buyout package will leave on December 31.
    • The buyout package matches standard severance, including at least eight weeks of pay in the United States.
    • The buyout program is being offered to workers in the United States, Canada, the United Kingdom, and India.
    • The company previously cut 4,800 jobs.

    Still unconfirmed

    • Microsoft expects a specific number of workers to take the buyout deal, or has calculated the exact total cost and anticipated savings.

    What to watch next

    • Disclosures on how many employees accept the voluntary buyout offers by the December 31 departure date
    • Any official announcements regarding potential subsequent layoffs if buyout targets are not met
    • Updates on total annual artificial intelligence capital expenditures hitting $175 billion
    Sources used for this update (21)
    1. techcrunch.com — TechCrunch | Startup and Technology News
    2. www.straitstimes.com — Oil edges lower following three days of gains
    3. The Seattle Times — Microsoft offers mass buyouts for roughly a quarter of its workforce
    4. Bloomberg.com — Microsoft to Offer Buyouts to 60,000 Workers in Latest Cost Cut
    5. Axios — Redmond-based Microsoft offers buyouts to 60,000 employees
    6. CBS News — Microsoft offers buyouts to 60,000 workers as it pours money into AI
    7. 10TV — Microsoft reportedly offering voluntary buyouts to more than 25% of its workforce
    8. Yahoo Finance — Microsoft is the Latest Company to Reduce its Workforce Over AI. It's Offering Buyouts to Tens of Thousands.
    9. Forbes — Microsoft Offers Buyout Deals to 60,000 Staffers
    10. Reuters — Microsoft offers buyouts to around 60,000 employees to contain costs
    11. Indianapolis Business Journal — Microsoft offers quarter of its global workforce voluntary buyouts
    12. www.theguardian.com — Microsoft to reportedly offer buyouts to 60,000 employees in ...
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