Microsoft will give qualifying employees a voluntary exit offer as the tech giant looks to bring down costs during its heavy investments in the artificial-intelligence buildout.
Microsoft published a letter that Vice President and Chief People Officer Amy Coleman sent to employees on Monday. According to the letter, Microsoft is introducing a voluntary exit offer to eligible employees that will give them financial and career planning support if they want to leave the company. This offer will be available to eligible employees in the U.S., Canada, the U.K., and India.
The letter didn't specify how many employees will receive the offer, but Bloomberg reported on Monday that Microsoft plans to offer buyouts to about 60,000 workers. A Microsoft spokesperson confirmed to Barron's that 60,000 employees will be eligible.
According to Microsoft's annual 10-K filing, the company employed approximately 223,000 people on a full-time basis as of June 30. That means, according to the reported 60,000 figure, Microsoft plans to send this offer to about 27% of its full-time workforce.
"The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," Coleman said in the letter.
Microsoft stock rose 1.1% to $530.50 on Monday.
Microsoft has been spending big on building out the infrastructure needed to power AI, and that spending isn't expected to slow down soon. The company reported fiscal fourth-quarter capital expenditures of $41 billion in July, and analysts surveyed by FactSet expect fiscal first-quarter capex of $51 billion.
Microsoft is scheduled to report earnings after the stock market closes Wednesday. Wall Street will be watching closely to see what the company has to say about these voluntary offers, and what they mean for near- and long-term spending commitments.
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