MICROSOFT OFFERS VOLUNTARY BUYOUTS TO 60,000 EMPLOYEES

Microsoft has offered voluntary buyouts to about 60,000 employees, roughly a quarter of its global workforce. The offer covers eligible staff in the UK, US, Canada and India. Employees at level 70 or below in Microsoft’s internal ranking system can qualify if their part of the business participates. Chief People Officer Amy Coleman said the company selected participating organisations “based on each business’s priorities, customer commitments and workforce needs.”

The offer gives eligible employees who are considering leaving Microsoft the option to do so with financial support. A Microsoft spokesperson said its terms would be comparable to the company’s standard redundancy package, which varies by market. That package typically includes pay based on length of service, shares awarded over time, healthcare and career planning services, the spokesperson said. The heads of Microsoft’s business units determined eligibility; the sales organisation, some corporate services and some engineering teams will not participate.

Microsoft offered voluntary early retirement to 8,750 US employees in April, with about 30% of those eligible accepting, according to the company. The earlier offer targeted longer-serving staff, while the new programme has a wider pool of eligible employees. Microsoft expects a lower take-up rate this time, partly because it offered more generous retirement terms. Its Xbox division cut 3,200 jobs in July, around 20% of its workforce. A Microsoft spokesperson said artificial intelligence was not driving the buyout programmes.