Microsoft to offer buyouts to 60,000 workers including in Canada in new cost-cutting push

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeWorkMicrosoft to offer buyouts to 60,000 workers including in Canada in new cost-cutting pushFollows buyout offers to retirement-age employees in JulyAuthor of the article:Brody Ford and Nikki WallerMicrosoft is offering buyouts to 60,000 employees in the U.S., Canada, India and the U.K. Photo by Martin LELIEVRE /AFP via Getty ImagesMicrosoft Corp. will offer buyouts to about 60,000 workers, representing roughly a quarter of its total staff, as part of the company’s efforts to trim costs and retool its workforce for the artificial intelligence era.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSome personnel in the United States, Canada, India and the United Kingdom at a vice president level and below will be eligible, said a Microsoft spokesperson.This advertisement has not loaded yet, but your article continues below.Divisions such as Xbox, Windows, Copilot and finance are fully participating in the offer, according to people familiar with the terms. Certain pools of employees, including some focused on data centres, sales, marketing, cybersecurity and quantum computing, aren’t eligible, the people said. Microsoft declined to comment on these specifics.FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try again“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” chief people officer Amy Coleman said in a note to staff Monday. Workers will receive benefits similar to a standard severance package, the spokesperson said.The world’s largest software maker has shed tens of thousands of workers in waves of layoffs in recent years. In July, it offered buyouts to retirement-age employees, and more than 30 per cent of the roughly 8,750 eligible people took the offer. Microsoft expects far fewer personnel to accept the latest buyout proposal compared with the voluntary retirement program, the spokesperson said.Microsoft’s headcount as of the end of June was 223,000. The figure has been largely flat since 2022, about the time Microsoft began spending heavily on AI and data centres — squeezing budgets and hiring elsewhere in the company.This advertisement has not loaded yet, but your article continues below.The company is scheduled to report financial results on Wednesday, and investors will be laser-focused on signs that the heavy spending on AI is paying off. Microsoft shares rose about one per cent at midday in New York.Other companies have sought to shrink headcount as they redirect spending to AI infrastructure. Google offered voluntary buyouts in a number of units last year, CNBC reported. Meta Platforms Inc.’s headcount is down by more than 20,000 from a late 2022 peak. Both are among the biggest spenders on data centre infrastructure.The Microsoft spokesperson said the company wants employees who are engaged on the hard problems it’s trying to solve. That echoes other tech bosses, who’ve publicly made clear that continued employment means embracing a faster pace of work and change.Elon Musk in 2022 famously gave Twitter employees the choice to be “extremely hardcore,” or take a severance payment. Earlier this year, Business Insider reported that a Google executive told employees in his organization that those who weren’t “all in” on AI could have a voluntary buyout package.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Workers deciding whether to take a buyout typically assess their savings and whether they’re at risk of layoffs later. Midcareer professionals also consider the job market and how long it might take them to find a new role, or whether the package gives them enough runway to make a pivot. Buyouts typically go to more senior, higher-cost staff, as with Microsoft’s round of early retirement offers, and offer more generous terms than a layoff.In some cases, Microsoft will try to retain top talent if employees opt to take the buyout offer, the spokesperson said.The buyouts give Microsoft units “another way to adapt their workforce to changing needs,” Coleman wrote in the memo.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.