Microsoft's dramatic announcement: 60,000 employees heading home

Microsoft announced a voluntary departure program for approximately 60,000 employees, about 27% of its global workforce, in four countries. The move aims to cut costs following massive investments in artificial intelligence. There is uncertainty regarding the company's employees in Israel.

Software giant Microsoft has announced a voluntary departure program targeting approximately 60,000 employees, representing about 27% of its global workforce of 223,000 employees. The program is aimed at employees at grade 70 and below in four countries: the United States, the United Kingdom, Canada, and India. In an official memo, Senior Vice President of Human Resources Amy Coleman presented the move as an opportunity for personal growth. Eligible employees will receive a financial package and career counseling services identical to standard severance packages, and will be required to decide by December. The current program comes about six months after an early retirement program in April, which was offered to about 7% of employees in the US. The move stems from the financial pressure of the AI race, which has increased capital expenditures on data centers. There is significant concern among Microsoft's approximately 3,000 employees in Israel about the cuts spilling over to the local branch. The article notes that this is a widespread phenomenon in Silicon Valley of using voluntary departure programs as an alternative to forced layoffs.