Beating AI News Flash: Microsoft has introduced a new round of voluntary severance packages, with approximately 60,000 employees eligible, accounting for 27% of its global workforce. This covers the United States, Canada, the United Kingdom, and India. Employees can choose to take compensation and leave.
The departments involved this time are very broad. In addition to Windows, Xbox, Finance, and Human Resources, even the Copilot and AI Experience teams are included. Conversely, sales, marketing, cybersecurity, and some data center positions have been excluded. Microsoft is investing heavily in AI, but those building AI products are not necessarily immune from workforce adjustments.
Earlier this year, Microsoft offered early retirement to approximately 8,750 senior employees, and ultimately more than 30% accepted. This time, there are no age or tenure restrictions, and some executives can also apply. However, compensation basically follows standard severance norms, with no additional enhancements. Microsoft expects that far fewer people will actually choose to leave.
In recent years, Microsoft has actually not lacked growth. From fiscal year 2022 to 2026, revenue rose from $198.3 billion to $331.8 billion, an increase of about 67%, while its global workforce grew only from 221,000 to 223,000. Over four years, annual revenue increased by $133.5 billion, while headcount rose by only 2,000.
