Microsoft has announced a voluntary buyout program for up to 60,000 employees, roughly 27% of its global workforce. The offer targets workers in the U.S., Canada, India, and the U.K. at experience level 70 or below. This move comes as the tech giant seeks to balance its significant investments in AI infrastructure with financial efficiency.
The company has been expanding its data centers to meet rising AI computing demands, serving clients like Anthropic and OpenAI. This expansion has strained Microsoft's finances, leading to previous cost-cutting measures, including a voluntary retirement program in April and layoffs in July.
Employees eligible for the buyout must decide by December, with those accepting the offer set to leave by December 31. Some teams, including marketing, sales, and engineering, have opted out of the program. Microsoft did not specify a target number of participants this time.
In the second quarter, Microsoft reported $19.64 billion in positive free cash flow, a 23% year-over-year decline. Competitors Alphabet and Amazon both reported negative free cash flow for the same period. Microsoft is scheduled to report its third-quarter results on Wednesday.