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Microsoft offers voluntary buyouts to about 60,000 staff as headcount shrinks

The offer is far wider than the earlier retirement scheme, and it fits a plan to cut headcount while funding AI infrastructure.

A tall stack of coins tips a brass scale beside a single chip, with an empty open drawer on a wooden table.
AI-generated illustration

Microsoft has opened voluntary buyout offers to roughly 60,000 staff in the US, UK, Canada and India, a far wider round than the retirement scheme limited to about 9,000 people earlier this year. Chief executive Satya Nadella has said total people costs will fall while cost per head and GPU access per researcher rise, a plan that trims headcount to fund AI infrastructure. Headcount has also dropped year over year for the first time in a decade, to about 223,000 as of June 30. The package is largely standard severance, so uptake is uncertain, but even a 5 percent acceptance would mean around 3,000 departures, and eligible staff have until December to decide. Separately, Dan Greenawalt, who led Forza Motorsport, is retiring from Microsoft after almost 27 years, and his Turn 10 Studios has been folded into Playground Games.

Why it matters

Microsoft is trading staff numbers for AI spending, with total people costs set to fall even as per-head costs and GPU access per researcher rise. Headcount has already dropped year over year for the first time in a decade, to about 223,000. Eligible employees in the US, UK, Canada and India have until December to decide, and the outcome will show how many of the 60,000 actually leave.

Sources · 1

Checked against its sources before publishing · 29 October at 20:07