Microsoft puts 60,000 jobs at risk in cost-cutting measures

Microsoft is offering voluntary redundancy packages to up to 60,000 employees across four countries as the technology giant cuts costs while investing heavily in artificial intelligence.

Microsoft has put up to 60,000 jobs at risk as it offers thousands of employees voluntary redundancy packages in a major cost-cutting exercise.

The technology giant, which employs about 223,000 people worldwide, including 6,000 in the UK, is offering the “buyout” scheme to staff in Britain, Canada, the US and India.

Employees across Microsoft’s finance, human resources, artificial intelligence, Copilot and Xbox divisions are among those eligible.

Workers in data centres, sales, marketing, cyber security and quantum computing are excluded from the offer.

Chief people officer Amy Coleman described the scheme as a new option for employees considering leaving the company.

She said in a blog post: “This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.

“It also gives participating organisations another way to adapt their workforce to changing needs.”

Coleman added that Microsoft would “learn from” the programme.

The move comes as Microsoft continues to increase its use of AI across its products and operations, while spending billions of pounds on infrastructure to support the technology.

The company launched a new category of Windows computers in 2024 built around its Copilot AI assistant.

It has also pledged £22 billion between 2025 and 2028 to expand Britain’s AI infrastructure.

That investment includes backing for a proposed data centre in Loughton, Essex, being developed by UK start-up Nscale. Microsoft confirmed last week that it had withdrawn from an agreement to lease computing capacity at the site after concerns over delays to its connection to the electricity grid.

The latest voluntary redundancy offer follows 4,800 job cuts announced by Microsoft worldwide in July, including significant reductions at its Xbox gaming business.

Microsoft has previously used voluntary departures to reduce its workforce.

Retirement-age employees were offered buyouts as part of an earlier programme, with more than 30 per cent of eligible workers accepting.

The company’s latest move reflects a wider shift across the technology industry, where firms are attempting to reduce costs while redirecting investment towards AI.

Alphabet, Google’s parent company, also offered voluntary buyouts across several divisions last year as it sought to streamline its workforce.

Microsoft has not said how many employees it expects to accept the latest offer, meaning the final number of job losses could be significantly below the 60,000 workers eligible for the scheme.

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