Microsoft said to plan voluntary exit offers for about 60,000 employees as it steps up AI spending

Artificial intelligence (AI) is now shaping the workforce policies of the world's big technology companies. While new hiring opportunities are emerging in the IT sector, Microsoft appears to be moving towards reducing its headcount. The company is reported to be running a scheme that would let about 60,000 employees leave their jobs voluntarily, with eligible staff to be given a financial package in return.

According to the information available, employees in select teams in the US, Canada, India and the UK may be covered. Some employees at the vice president level and below are said to be able to take up the scheme.

The scheme will not apply to all employees, however. Staff in certain data centre, sales and marketing teams will be excluded, which makes the decision all the more significant for employees in those departments.

A company spokesperson said eligible employees would be given the option of leaving. The company's chief people officers have also reportedly made it clear in a message to employees that those considering leaving may get this option along with financial support. The package could resemble the compensation usually paid when a job ends.

Cost management and investment in AI are believed to be the main reasons behind the possible decision. Building, scaling and efficiently running technology based on artificial intelligence requires large sums of money.

Technology companies are spending heavily on building and maintaining the data centres that AI systems need. For this reason, companies are reviewing their headcount, ways of working and overall costs.

Microsoft is also reported to want to focus more on employees who can work on future technological challenges. In some cases, if an employee who accepts the exit offer has the required skills and special expertise, the company may consider retaining that person.

The move points to a major shift in the technology sector. AI is changing the nature of some traditional jobs, while demand is growing for skills such as machine learning, cloud computing, data science and AI engineering.

Google had earlier been reported to have offered employees in some departments a financial package to leave voluntarily. Meta, meanwhile, made large cuts to its workforce from the end of 2022.

Overall, growing investment in AI and the need to keep costs in check are leading technology companies to change their workforce policies. However, official information is needed on the exact number of eligible employees under Microsoft's plan, the country-wise breakdown and the final terms. Official confirmation is therefore still awaited on whether 60,000 employees are actually being offered the chance to leave.