Microsoft Reports Plan to Offer Buyouts to 60,000 Employees Amid AI Shift

According to reporting from The Guardian, Microsoft is reportedly preparing to offer buyouts to 60,000 employees as part of an effort to cut operating expenses alongside the growing integration of artificial intelligence. Bloomberg reported on Monday that participating divisions will include Windows, Xbox, and the Copilot AI tool. Meanwhile, workers in specific areas—such as datacenters, marketing, and cybersecurity—are not eligible for the program.

Amy Coleman, Microsoft's chief people officer and executive vice-president, addressed the initiative in a statement, noting that the offer supplies eligible staff with a transition option while giving participating business units a method to adjust their staffing to evolving demands. Microsoft did not respond to queries for further details regarding the package.

This development builds on previous staffing adjustments implemented by the company. In April, Microsoft offered voluntary retirement to about 7% of its U.S. workforce, which at the time comprised roughly 125,000 employees out of a global workforce numbering approximately 223,000 workers.

Similar cost-cutting and workforce-reduction measures have rippled through the broader technology sector as companies increase investments in AI. Meta planned in April to reduce its personnel by 10% (about 8,000 employees), Amazon executed reductions within its retail division, and Oracle cut 21,000 jobs (nearly 13%) in June.

Despite these extensive cuts, uncertainty remains over whether workforce reductions have generated higher operational efficiency. Meta has scaled back certain layoff plans, and Microsoft leader Ryan Roslansky recently voiced social media complaints concerning “AI slop” in the workforce. Furthermore, a National Bureau of Economic Research working paper surveying 9,000 global senior executives indicated that 90% of respondents have not yet observed increased productivity at their companies resulting from artificial intelligence.