Microsoft Is Reportedly Laying Off Almost 9,000 Employees Via Voluntary Buyouts

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7% Of The US Workforce Is Eligible For This Program.

Story Highlight
  • Microsoft is planning to get rid of 8,750 employees via its voluntary buyout program.
  • The initiative will be offered to 7% of US employees at the senior director level or below.
  • The company hopes the monetary support will encourage employees to take the next step on their own terms.

Just last year, Microsoft cut 15,000 jobs to redesign its management structure and increase investment in AI. Unsurprisingly, fans were not kind to the tech giant for making this decision, boycotting Xbox, and cancelling their Game Pass subscription.

Microsoft CEO Satya Nadella even stated that the decision was not easy, and he felt guilty afterwards. However, insiders suggest the company has been gearing up for another round of layoffs, and if the latest reports are correct, almost 9,000 people could be let go.

Why it matters: As the tech giant continues to decrease its workforce one way or another, the job market is finding new lows every day in this modern AI climate.

Microsoft AI
Microsoft cut 15,000 jobs last year to invest in AI.

As reported by CNBC, Microsoft is planning to get rid of 8,750 US employees through its voluntary buyout program. This initiative will give workers whose age and years of employment add up to 70 or more a paid incentive to move on from the company.

Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support.

-Microsoft Executive VP Amy Coleman

7% of the 125,000 Microsoft employees in the country qualify for this program, meaning almost 9,000 people could leave the tech giant if they accept this paid exit. 

Starting in May, Microsoft will start offering the voluntary buyout program to workers at the senior director level and below. Amy Coleman, the Executive Vice President of the company, stated that she hopes this program will encourage eligible employees to take the next step on their own terms with generous monetary support.

Microsoft
The buyout will be offered to 8,750 employees.

The report didn’t reveal which divisions will be impacted by this buyout program, leaving the status of Xbox shrouded in mystery. But one thing is for sure: with companies like Epic firing 1,000 employees, mass layoffs are going to continue, whether by force or through sweeteners like this buyout program.

Do you think Microsoft is removing too many people through this initiative? Tell us in the comments below or head to the Tech4Gamers forum for discussion.

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