Microsoft announces voluntary job cuts across four countries
US technology giant Microsoft announced a voluntary job reduction programme in the United States, Canada, India and the United Kingdom.
The initiative aims to reduce costs associated with its extensive investments in artificial intelligence infrastructure while maintaining financial efficiency, CNBC reported.
Around 60,000 employees, representing 27% of Microsoft's total workforce of 223,000, are eligible for severance packages, CE Report quotes STA.
Like other major technology companies, the Windows software maker has been increasing investments in data centres to meet growing demand for artificial intelligence. Microsoft provides cloud services to Anthropic, OpenAI and numerous other customers, adding pressure to its finances.
In April this year, Microsoft introduced its first voluntary retirement programme, which was available to approximately 7% of its US employees. In July, the company announced plans to eliminate 4,800 positions through another voluntary retirement programme, with more than 30% of eligible employees opting to participate.
The latest programme is broader in scope, extending to senior employees, including those holding positions as high as Microsoft vice presidents.
Amy Coleman, Microsoft's executive vice president and chief human resources officer, said in a message to employees that the offer reflects the company's efforts to increase flexibility in organisational changes while giving employees greater control over decisions concerning their future.
Microsoft is also transforming its business model, increasingly seeking to charge customers based on their actual use of artificial intelligence services.
The company has introduced AI-powered tools for software developers, sales teams and supply chain employees, reporting significant results from their implementation.
Employees have until early December to decide whether to accept the offer. Those who participate will leave the company on December 31, according to a person familiar with the plans cited by CNBC.
Microsoft is also scheduled to release its third-quarter financial results on Wednesday.
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