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Summary of article:
As Microsoft increases investments in AI and cloud, it has launched a voluntary separation package for about 60,000 employees to expand flexibility and reduce costs. Some employees may decide whether to accept it before December.
tech giantMicrosoft Company(Microsoft ) is investing heavily in artificial intelligence (AI), while also seeking to cut costs. Microsoft today said it is offering voluntary severance packages to about 60,000 employees, about 1/4 of the company’s total workforce.
Agence France-Presse reported that a Microsoft spokesperson said that the United States, Canada,India In some teams in the UK, employees at vice president level and below are eligible to apply, but some employees are not within the scope of application, including employees in some data centres, sales and marketing teams.
American financial media CNBC, quoting an unnamed source, reported that about 60,000 Microsoft employees are eligible for this voluntary separation plan.
In April this year, Microsoft announced the launch of its first voluntary retirement plan in the company’s 51 years of existence. At the time, about 7% of its US employees were eligible.
Amy Coleman, Microsoft’s executive vice president and head of human resources, wrote in a memo to employees: “The voluntary separation package reflects an important direction in our approach to change management: creating greater flexibility and, where possible, providing employees with more choices so they can plan the next phase of their lives.”
“This plan builds on the experience gained through our voluntary separation program earlier this year,” he said.
In response to the continued growth in AI-related demand, Microsoft continues to increase data center spending and provides cloud services to Anthropic, OpenAI and many other companies.
The investments also put pressure on Microsoft’s finances. Cloud services rivals Alphabet and Amazon both reported negative free cash flow in the second quarter, while Microsoft maintained positive free cash flow.
People familiar with the matter said some marketing, sales and engineering teams have decided not to participate in the plan.
The person said employees will have to decide whether to accept the plan before December, and those who choose to leave will leave the company on Dec. 31.
A person familiar with the matter, who was briefed on the new scheme, said the previous voluntary retirement scheme was open only to employees at the senior director level and below, while the new scheme will extend the applicable ranks up to the vice president level.
Summary FAQ
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Microsoft said that about 60,000 employees are eligible for this voluntary separation program, which is about 1/4 of the company’s total employees, which includes some teams in multiple countries.
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Employees at the vice president level and below in some teams in the United States, Canada, India, and the United Kingdom can apply, but some data center, sales, marketing, and engineering employees are not eligible.
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While Microsoft is expanding investments in AI and data centers, it also faces cost pressures. Therefore, it uses voluntary resignations to improve flexibility, adjust manpower and allow employees to decide to leave before December.
