Microsoft extends buyout offers to 60,000 staff as AI reshapes workforce

Microsoft has announced plans to offer buyouts to 60,000 employees in a move designed to reduce costs amid the increasing integration of artificial intelligence. The decision marks the latest instance of how AI is influencing staffing levels across the technology sector and the broader labour market. According to reports, the company aims to streamline its operations while adapting to new technological demands.

This initiative follows several other workforce reductions implemented by the firm earlier this year. In April, Microsoft offered voluntary retirement packages to approximately seven per cent of its United States staff, a group that numbered around 125,000 employees at the time. The company currently employs roughly 223,000 workers globally. Bloomberg reported on Monday that prominent divisions, including Xbox, Windows and the Copilot AI tool, will participate in the new offer. However, staff in specific areas such as cybersecurity, datacentres and marketing are reportedly excluded from eligibility.

Amy Coleman, Microsoft’s executive vice-president and chief people officer, stated that the offer provides eligible employees with a supported option to transition out of the company. She added that it allows participating organisations to adjust their workforce to meet changing needs. The firm did not respond to requests for further details regarding the specific terms of the offer. Ryan Roslansky, a senior leader at Microsoft, recently expressed concerns about low-quality AI content in the workforce on social media.

The move aligns with a wider trend among major tech firms. Meta announced plans in April to cut ten per cent of its personnel, equating to about 8,000 jobs, to improve efficiency. Amazon has also made multiple cuts, most recently within its retail division. Oracle reduced its workforce by nearly 13 per cent in June, eliminating 21,000 positions due to AI adoption. Despite these measures, it remains unclear if they have translated into greater efficiency, with some firms scaling back plans. A recent National Bureau of Economic Research working paper found that 90 per cent of 9,000 senior executives surveyed globally said AI had not yet resulted in higher productivity at their companies.