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Microsoft offers severance packages to quarter of staff to cut costs

Microsoft offers severance packages to quarter of staff to cut costs

Microsoft is offering a voluntary exit package to roughly 60,000 employees to reduce costs as it increases investments in artificial intelligence and data center infrastructure. Staff members have until December to decide on the offer, with departures scheduled for the end of the year.

Microsoft has announced a voluntary departure package for approximately 60,000 of its 223,000 employees as part of a strategy to reduce costs. The initiative is linked to the company's shifting focus toward artificial intelligence, which has necessitated significant investments in data centers over recent months. Employees have until December to decide whether to accept the offer, with those choosing to leave having their contracts terminated by December 31.

This follows a similar program introduced last summer targeting workers nearing retirement age, of which 30 percent chose to depart. Despite the scale of this new proposal, management expects the actual take-up rate to be much lower than previous exit programs. The company emphasizes that this provides a structured option for staff members who are already considering leaving the organization as it pivots its corporate priorities toward new technological developments.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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