Microsoft sends voluntary departure offers to about 60,000 employees, with departures on December 31
Microsoft has sent voluntary departure offers to about 60,000 employees at level 70 and below in the United States, Canada, India, and the United Kingdom, accounting for 27% of its 223,000 employees worldwide. Decisions are made in the first week of December, with departures on December 31. Compensation is a lump-sum payment of 8 to 39 weeks' wages, but because these are voluntary departures, recipients cannot claim unemployment benefits. This is Microsoft's third round of layoffs this year. In April, the first buyout was aimed at employees whose age plus years of service was ≥70; 8,750 Americans were eligible, and 30% took voluntary departure. In July, there were 4,800 routine layoffs. The original text mentions that Microsoft's capital expenditure this year was $115.9 billion, up 79.6% year on year, accounting for 35% of revenue, while revenue per employee rose from $1.235 million to $1.488 million.
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Microsoft's third round of layoffs this year covers about 60,000 people in the form of voluntary departures; the original text also provides compensation plans and capital expenditure data, which can be read together to understand the relationship between AI investment and workforce contraction.
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[[**Microsoft has sent voluntary exit offers to about 60,000 employees (27% of its global workforce), with departures on December 31, compensation of 8–39 weeks' pay, and no age or tenure restrictions. This is the third round of layoffs this year, highlighting declining company reliability amid AI-driven efficiency gains.**
**Key points**
**1. October voluntary layoffs cover about 60,000 people with no age limit**
Microsoft sent voluntary exit offers in the US, Canada, India, and the UK to about 60,000 employees at level 70 and below, 27% of its global workforce, including GMs and some VPs; there are no age or tenure thresholds, decisions are made in the first week of December, and departures are on December 31.
**2. Sign and take the money, and you give up unemployment benefits**
If you sign, you get 8–39 weeks' pay in a lump sum, but it counts as voluntary departure, so you cannot claim unemployment benefits; if you do not sign, you wait for the next round, which may not be more generous.
**3. Two rounds of layoffs had already taken place earlier this year**
In April, the first buyout was aimed at employees close to retirement with age plus tenure ≥ 70; 8,750 Americans were eligible, and 30% left voluntarily; in July, a regular layoff cut 4,800 people, bringing the total close to the original target of about 8,000.
**4. Under AI-driven efficiency gains, company reliability is declining, and individuals need their own business**
Yesterday Microsoft sent a letter to 60,000 employees with the title Voluntary Exit Offer, a voluntary departure invitation.
These employees account for 27% of the 223,000 employees worldwide. In the United States, Canada, India, and the United Kingdom, level 70 and below, including even GMs and some people with VP titles. There is no age threshold, no tenure threshold, and performance is not a factor. Decisions are made in the first week of December, and people leave on December 31.
This is Microsoft's third layoff plan this year (what it is called does not really matter).
In April, that round of voluntary layoffs was to let people close to retirement leave first. It was Microsoft's first buyout in 51 years, and 8,750 Americans were eligible: age plus tenure ≥ 70, which amounted to asking only people close to retirement to leave. The package offered in that round was very generous: 8 to 39 weeks paid in a lump sum, health insurance for up to five years, and continued vesting of equity for 12 months for those with more than 24 years of tenure.
In that round, 30% of people left voluntarily.
In July there was another regular layoff round, cutting 4,800 people; together with those who left voluntarily in April, that roughly completed the original target of about 8,000 people.
In October, this round of voluntary layoffs is an order of magnitude larger and has no age limit. Perhaps there were too many people, so the package is also not as good as last time.
Employees in the voluntary layoff have two choices:
Sign, take the money, and leave. 8 to 39 weeks' pay in a lump sum. The cost is that you are also classified as a voluntary departure and cannot receive unemployment benefits.
Don't sign; wait. What you wait for may be the next round, but the next round won't necessarily be more generous. People who were forcibly laid off in July said on forums that the package they got was about the same as what those who left voluntarily in April got, and that “if I'd known, I would have waited.” The reverse is also true. People who left voluntarily may have given up a step for nothing.
But it is worth noting that Microsoft is laying people off, yet Microsoft does not lack money. This year's capital expenditure is $115.9 billion, up 79.6% year over year, accounting for 35% of revenue. Revenue per employee rose from $1.235 million to $1.488 million.
No one can resist this temptation, and the world will unflinchingly make the most rational choice.
From now on, everyone has to have their own business. Face customers yourself and truly complete the loop of making money.
Companies are becoming less and less reliable.
This article comes from the WeChat public account: Ju AI, author: Ju AI Channel: Viewpoint. This content is authorized for publication by the author. The views represent only the author and do not represent the position of Huxiu. If you have any objections or complaints about this manuscript, please contact tougao@huxiu.com. Everyone who is changing and wants to change the world is in the Huxiu APP[ ]]]