Tech giant Microsoft has announced it is offering voluntary severance packages to approximately 60,000 employees as part of a cost-cutting effort to focus more on its investments in artificial intelligence. This figure represents about a quarter of the company's total workforce.
According to Agence France-Presse, the offer is available to employees in specific teams in the United States, Canada, India, and the United Kingdom who are at the vice president level and below. However, some groups, such as a number of data center and sales staff, are excluded from the plan.
Amy Coleman, Microsoft's Executive Vice President and Chief Human Resources Officer, wrote in a memo to employees that the plan "creates more flexibility" and gives employees the opportunity to "shape the next chapter of their professional lives."
This is the second time this year that Microsoft has implemented such a program. In April, the company offered early retirement to about seven percent of its US workforce. According to CNBC, approximately 30 percent of eligible employees accepted that offer.
Microsoft had 223,000 employees worldwide at the end of June, a decrease from the 228,000 at the end of 2025. The company, like other tech giants, has invested hundreds of billions of dollars in data centers and advanced artificial intelligence chips.
These massive expenditures have led investors to question the return on these investments and their economic justification. Microsoft is expected to release its quarterly earnings report later this week, which could provide a clearer picture of the company's financial situation.
Source: Agence France-Presse
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