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Microsoft said on Monday it is offering voluntary buyouts to many staff members as the technology giant looks to contain costs and help fund its massive AI investments.
The offer was extended to about 60,000 employees according to Microsoft. The company had 223,000 full-time employees globally as of June 30, according to its annual filing, meaning more than a quarter of its global workforce would have received the buyout offer.
Staffers across the Windows maker would be eligible for the offers, including those working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, a source familiar with the matter told Reuters, requesting anonymity as the matter was private. Units such as marketing, commercial business and security will be excluded, the source added.
In a memo, Microsoft’s executive vice-president and chief people officer Amy Coleman said the offer will be available to eligible employees in Canada, India, the United Kingdom and the United States.
Microsoft declined to tell CBC News how many Canadians were offered the buyout.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs,” chief people officer Amy Coleman said in a staff memo.
Tech company Block, which owns payment platform Square, announced it will lay off thousands of employees because of the potential of artificial intelligence. But some industry watchers say blaming AI can be an easy excuse.
The company said it was a time-limited, voluntary program and built on insights gained from a previous voluntary retirement program. The eligible employees will receive details within the next few hours, it added.
Like other tech giants, Microsoft is spending hundreds of billions of dollars on AI data centres and chips, drawing scrutiny from investors over whether the returns will justify the staggering cost. The company, slated to report first-quarter results after markets close on Wednesday, has forecast $175 billion US in capital expenditures for the 2026 calendar year.
Shares of Microsoft, which had risen about 10 per cent this year, were up about 1 per cent on Monday. The development was first reported by Business Insider.
The company earlier this year offered voluntary buyouts to about 7 per cent of its U.S. workforce, or about 9,000 employees.
In July, Microsoft announced it would cut 4,800 jobs, or about 2.1 per cent of its global workforce, overhauling its Xbox gaming business and divesting up to…
Read More: Microsoft gives voluntary buyout offer to about 60,000 employees
