Microsoft Extends Voluntary Exit to Nearly 60,000 Employees Amid AI Push

Microsoft is offering a voluntary exit offer (VEO) to nearly 60,000 employees across its Canada, India, UK and US teams. The move is seen as part of the industry-wide efforts to cut costs and restructure owing to AI-led disruptions

According to reports, 27% of Microsoft workforce is eligible for the VEO and that 30 percent of those eligible have already opted in. Regulatory filings show Microsoft had 223,000 employees globally by June-end quarter, down from 228,000 during the same period last year.

Microsoft says that the VEO gives an opportunity to some employees who may be considering a future outside the company.

“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter. This builds on what we learned earlier this year through the Voluntary Retirement Program,” the company said in a blog post.

“The Voluntary Exit Offer is new for us. We’ll learn from it. At the same time, we’ll keep helping people focus on the work that matters most, build new skills and, where it makes sense, find new opportunities across Microsoft. There is no one-size-fits-all approach for every team or every employee. These are a few of the ways we’re trying to meet different business needs while continuing to create opportunities for our own people to grow and contribute,” it adds.

Microsoft has been on a cost-cutting spree for a while. In July, the company eliminated nearly 4,800 roles (roughly 2.1 percent of then global workforce). Microsoft had then said the move aimed at adapting with the changing business dynamics. Though it did categorically mention that the layoffs were not due to the AI.

“The way technology is built, deployed and used is transforming faster than at any point in my time here. Our customers’ needs are shifting, the business models that serve them are shifting, and that means the work itself - what we do, where we focus, and how we’re organized has to transform too. Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it. That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers,” the company had then said.

The conventional tech companies across the globe are looking to trim costs as they continue to heavily invest in AI.

Earlier this year, Oracle executed a large downsizing campaign by slashing 30,000 roles globally. The likes of PayPal, Electronic Arts (EA), Ubisoft, HubSpot, Workday and Qualcomm have also slashed jobs this year. Back in India, hirings at IT giants have slowed down. Last year, TCS announced a plan to reduce 2% of the global workforce, impacting up to 20,000 roles.