Microsoft, the world’s largest software company, said on October 26 local time that it is offering a voluntary separation program to employees at the vice-president level and below in the United States, Canada, India, and the United Kingdom. About 60,000 employees accepted the offer and will receive benefits equivalent to standard severance pay.
Key details:
* Departments covered: Xbox, Windows, Copilot, and Finance are fully included; some employees in departments such as data centers, sales, cybersecurity, and quantum computing are excluded.
* Retention of executives: Microsoft is not taking “everyone who applies.” If top talent applies, the company may try to retain them in some cases.
* Transition and restructuring: Chief People Officer Amy Coleman said the move is intended to help employees who want to leave make a smooth transition, while giving departments more flexibility to adjust their teams as needs change.
💡 Behind the “downsizing”: Massive capital spending is looming, while AI is squeezing budgets for traditional businesses
Microsoft has adjusted its workforce structure several times in recent years:
* This April: It introduced its first voluntary retirement program (covering 8,750 employees), which more than 30% of employees accepted.
* This July: It laid off about 4,800 employees (2.1% of its total workforce).
As of the end of June this year, Microsoft had 223,000 employees, roughly the same as in 2022, but the allocation of funds has changed dramatically:
* Capital expenditure in Q4 of fiscal year 2026: $41 billion (up 70% year over year).
* Capital expenditure in Q1 of fiscal year 2027: Expected to rise to $50 billion, with revenue guidance of $89.85 billion to $90.95 billion (growth of 16%–17%).
Microsoft will release its latest earnings report this Wednesday (October 28). Markets will be watching closely to see whether its massive investments in AI computing power and data centers can generate real returns.
🔥 Industry trend: Tech giants are reallocating resources to make room for AI
Microsoft isn’t alone—Silicon Valley’s tech giants are all experiencing the growing pains of “AI squeezing traditional departments”:
* Amazon: Cut about 16,000 corporate jobs this January.
* Meta: Laid off about 8,000 employees this May (10% of its workforce), while more than 7,000 others were reassigned to new AI teams.
As the race for AI computing power intensifies, cutting costs and improving efficiency in traditional departments has become the new normal for tech giants. Are you optimistic about the prospects for Microsoft and other tech giants to monetize AI? Join the discussion in the comments! 👇
#AI Tech Giants #币安交易所
$MSFT.US
$GOOG.US
$AMZN.US
Key details:
* Departments covered: Xbox, Windows, Copilot, and Finance are fully included; some employees in departments such as data centers, sales, cybersecurity, and quantum computing are excluded.
* Retention of executives: Microsoft is not taking “everyone who applies.” If top talent applies, the company may try to retain them in some cases.
* Transition and restructuring: Chief People Officer Amy Coleman said the move is intended to help employees who want to leave make a smooth transition, while giving departments more flexibility to adjust their teams as needs change.
💡 Behind the “downsizing”: Massive capital spending is looming, while AI is squeezing budgets for traditional businesses
Microsoft has adjusted its workforce structure several times in recent years:
* This April: It introduced its first voluntary retirement program (covering 8,750 employees), which more than 30% of employees accepted.
* This July: It laid off about 4,800 employees (2.1% of its total workforce).
As of the end of June this year, Microsoft had 223,000 employees, roughly the same as in 2022, but the allocation of funds has changed dramatically:
* Capital expenditure in Q4 of fiscal year 2026: $41 billion (up 70% year over year).
* Capital expenditure in Q1 of fiscal year 2027: Expected to rise to $50 billion, with revenue guidance of $89.85 billion to $90.95 billion (growth of 16%–17%).
Microsoft will release its latest earnings report this Wednesday (October 28). Markets will be watching closely to see whether its massive investments in AI computing power and data centers can generate real returns.
🔥 Industry trend: Tech giants are reallocating resources to make room for AI
Microsoft isn’t alone—Silicon Valley’s tech giants are all experiencing the growing pains of “AI squeezing traditional departments”:
* Amazon: Cut about 16,000 corporate jobs this January.
* Meta: Laid off about 8,000 employees this May (10% of its workforce), while more than 7,000 others were reassigned to new AI teams.
As the race for AI computing power intensifies, cutting costs and improving efficiency in traditional departments has become the new normal for tech giants. Are you optimistic about the prospects for Microsoft and other tech giants to monetize AI? Join the discussion in the comments! 👇
#AI Tech Giants #币安交易所
$MSFT.US
$GOOG.US
$AMZN.US
