Microsoft Offers Compensation for 60,000 Employees as Part of Reorganization

Microsoft will offer compensation packages to approximately 60,000 employees for voluntary departure as part of cost reduction and workforce reorganization for the AI era. According to a company representative, the offer will cover some employees in the US, Canada, India, and the UK in positions of vice president and below.

According to sources, the offer fully applies to Xbox, Windows, Copilot, and financial administration, but will not affect some employees in data centers, sales, marketing, cybersecurity, and quantum computing. Microsoft declined to comment on these details.

"This offer gives eligible employees who may be considering a career outside the company a new option to transition now—with support," said Amy Coleman, head of human resources, in a memo on Monday. The payments will be similar to standard severance packages. In July, more than 30% of the approximately 8,750 eligible employees accepted the offer for those who reached retirement age; this time, the company expects significantly fewer to agree.

As of the end of June, Microsoft's workforce numbered 223,000 people and remained almost unchanged since 2022, when the company sharply increased spending on AI and data centers—this created pressure on budgets and hiring in other divisions. The company will present its financial results on Wednesday, and by midday trading in New York, shares had risen by about 1%.

Last year, Google offered voluntary departure packages in several divisions, CNBC reported, and Meta Platforms' workforce shrank by more than 20,000 people from the peak at the end of 2022. According to a Microsoft representative, in some cases, the company will try to retain strong specialists even if they accept the offer to leave.