Microsoft Proposes Voluntary Departure Plan for 60,000 Employees Amid AI Workforce Changes

Microsoft has announced a significant voluntary departure plan affecting approximately 60,000 employees across the U.S., Canada, India, and the UK, representing over a quarter of its workforce. This initiative, revealed by HR director Amy Coleman, differs from an earlier plan targeting older American employees near retirement by removing all age and seniority conditions. Instead, it focuses on specific divisions as the company seeks to adapt to evolving workforce needs, particularly in light of AI advancements, though Coleman did not explicitly link the plan to AI in her statements.

This follows previous job cuts where Microsoft eliminated about 4,800 positions in July and over 15,000 in 2025. Despite the voluntary nature of this offer, Microsoft acknowledges potential layoffs depending on economic conditions. Employees have until early December to accept the severance package, which is comparable to traditional layoffs. Participation in this new plan is expected to be lower than the over 30% uptake seen in a similar April plan offered to around 8,750 U.S. employees.

Coleman emphasized that prior job cuts were not directly replaced by AI, although some daily tasks are becoming automated. This trend is reflected industry-wide; U.S. employers attributed over 116,000 job cuts between January and August to AI developments. Meanwhile, Microsoft and other tech giants like Alphabet, Amazon, and Meta are investing heavily in AI, with Microsoft alone spending $41 billion in the second quarter of 2023, largely on data centers and AI-related chips.