Microsoft offers severance packages to 60,000 employees

 

William Faxius

 

Published 12:59

The tech giant is offering severance packages to one in four employees in order to focus more on AI.

Concerns are growing that more professional groups could be affected by this rapid development.

"This perhaps goes to show that people are losing their jobs," says Henning Eklund, a tech reporter at *Svenska Dagbladet*, speaking on *Radio Aftonbladet*.

Microsoft’s major investments in AI may have consequences for its workforce. An anonymous spokesperson told the news agency Bloomberg that the company is now offering severance packages to around 60,000 people—roughly one in four employees.

"It’s primarily about AI—and perhaps not so much that AI will take over these people’s jobs, but rather that even more capital needs to be poured into AI investments and the expansion of AI data centers. Consequently, they can no longer afford to keep this staff on the payroll," says Henning Eklund.

The tech giant has announced that it has presented voluntary separation agreements to some employees in the United States, Canada, India, and the United Kingdom. According to Bloomberg, the company’s workforce has shrunk significantly in recent years.

"Shows that people might be losing their jobs"

This massive package comes at a time when there is frequent talk of potential "AI bubbles" and overvalued tech companies. Microsoft’s leadership, however, appears to believe that the development of AI will not stagnate.

"It seems that those in charge at Microsoft, at least, do not believe we are heading toward an AI bubble." This is relevant to many listeners who have likely reflected on their own work situation or workplace: "What will happen if AI becomes truly proficient at my job?" This suggests that some people may indeed end up losing their jobs.

AI could affect a wider range of professions

The discussion surrounding AI and the labor market has long centered on programmers and how the technology might take over parts of their work. However, the impact of AI extends further, affecting a variety of professional fields.

"It’s not just about programming; it also concerns marketing, HR, finance, and other support functions. The scope is quite broad, as it involves a significant number of people—60,000, in fact. Previously, the conversation focused heavily on programmers, as AI is capable of handling a substantial portion of their tasks."

Earlier this year, Microsoft offered voluntary separation packages to approximately 8,750 employees of retirement age; 30 percent of them accepted. This time around, however, the company anticipates that a smaller proportion will take up the offer.