Microsoft is offering voluntary buyouts to employees in four countries, and around 60,000 people are eligible. The offer follows the company's first voluntary retirement program, announced in April, as it spends heavily on AI data centers.
Microsoft said Monday it is offering buyouts to a wide swath of employees. The voluntary exit offer covers certain workers in the U.S., Canada, India and the United Kingdom at level 70 or below.
Who qualifies for the exit offer
Around 60,000 people are eligible, according to a person familiar with the matter who asked not to be named. A spokesperson told Business Insider that more than a quarter of the company's workforce can take part.
Not every team is participating. Sales organizations, some engineering groups and some corporate functions are excluded.
Terms and timeline
Eligible employees have until early December to decide and would leave at the end of the year. The spokesperson said terms will be similar to Microsoft's standard severance, and that there are no plans for another buyout at this time.
Earlier this year, the US severance package for laid-off employees included a minimum of 60 days of base pay and, for most employees, up to a maximum of 39 weeks.
A follow-up to April's retirement program
The move comes six months after Microsoft announced its first-ever voluntary retirement program, for which around 7% of U.S. employees were eligible. CNBC reports that Microsoft has been ramping up spending on data centers to meet high demand for artificial intelligence, which put a strain on its finances.
Business Insider describes the new offer as Microsoft's latest attempt to slim its workforce without another round of involuntary cuts. Business Insider reported in June, citing a person familiar with the turnout, that about one-third of eligible employees took the earlier buyout.
Sources: CNBC, Business Insider
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