Symbolic imageMicrosoft offers voluntary buyouts to about 60,000 employees
Microsoft announced on Monday voluntary buyouts for up to 60,000 employees, roughly a quarter of its workforce, as it spends heavily on AI. It is the second such offer this year.
The offer covers selected teams in the US, Canada, India and Britain, up to vice-president level, while some data center, sales and marketing groups are excluded. In a memo, chief people officer Amy Coleman called it a way to create flexibility and adapt staffing to changing needs, without naming AI explicitly, according to Le Monde. Microsoft told AFP that departing staff get terms comparable to standard severance and that it expects far fewer takers than in April.
Costs and AI spending
Le Monde reports that Microsoft spent $41 billion on investments in the April-June quarter, mostly for data centers and AI chips, while headcount fell by 5,000 over the year to 223,000 at the end of June. Quarterly results are due on Wednesday.
April program as benchmark
The first offer in April went to about 8,750 US employees, and about a third accepted, Microsoft said in July, when it booked a $900 million charge.
Doubts over AI savings
The Guardian notes it is unclear whether AI-related job cuts have raised efficiency. A National Bureau of Economic Research paper found that 90% of 9,000 surveyed executives said AI had yet to bring greater productivity.