Microsoft proposed that 60,000 employees voluntarily quit their jobs, but it was estimated that "only 5% or less" would accept.

This number was told by a Microsoft spokesperson to Business Insider on October 28. On the same day, Microsoft Chief Financial Officer Amy Hood also mentioned in an email to employees: "I know there are some questions about the reason behind the resignation proposal announced this week. The purpose is to give employees autonomy if they choose to leave the company at their will. We also predict that very few people will choose, because the growth opportunities at Microsoft are so great."

The announcement was part of a quarterly email Amy Hood sent internally to employees when Microsoft announced its financial results. Usually, the information repeats what has already been made public, but this time, she specifically mentioned that the company proposed 60,000 people to voluntarily quit their jobs with benefits to reduce costs and put finance into large investments in AI, something that is causing a stir in the technology industry.

Specifically, personnel at the vice president level and below in certain departments in the US, Canada, India and the UK are eligible to participate in the program, except for some positions in the data center, sales and marketing departments. According to a Microsoft spokesperson, the support package includes the same benefits as the standard severance program.

Previously, Reuters quoted sources saying that employees in many departments qualified as AI experience workers, Copilot, finance, human resources, Xbox and Windows + Devices. Marketing, commercial sales and security departments are not included in this category.

However, Chris Williams, former vice president of human resources at Microsoft, said that the contract liquidation package with compensation "may not be the best offer you get". According to him, during the implementation process, many factors such as position, seniority, rank... will be considered separately.

"Microsoft typically does not offer compensation that exceeds the standard severance policy, but those who voluntarily leave their jobs may receive more favorable terms than if they were fired," Williams said. "The policy not only encourages employees to quit their jobs but also helps the company save costs, reduce legal risks and shorten processing time. Voluntary layoffs also help businesses simplify management."

According to Williams, who has more than 50 years working in human resources in Silicon Valley, if you receive an offer from Microsoft, the first thing you should do is evaluate your existing cash flow, including your ability to retire, maintain your life to find a new job, and especially your benefits.

"For many people, health care costs take up a significant proportion of their personal budget. Therefore, weighing the amount received from the program and insurance benefits if they continue to work is the deciding factor," he said.

Experts also believe that if retirement cannot be determined after leaving Microsoft, the person who accepts the contract liquidation should plan to find a new job for at least 6 months to a year, because the job market is currently "very harsh".

According to Bloomberg, Microsoft had 223,000 employees at the end of June, almost unchanged in size since 2022. In July, more than 30% of 8,750 eligible employees accepted the offer to liquidate private contracts for people reaching retirement age.

Microsoft's proposal for 60,000 people to voluntarily quit their jobs, equivalent to 1/4 of the global workforce, is in contrast to the new financial results. The company's first quarter fiscal 2027 report dated October 27 showed growth in nearly every index. Of which, total revenue reached 92.3 billion USD, up 19% over the same period last year and exceeding the forecast of 90.6 billion USD, profit from business activities increased 21% with operating profit margin reaching 50%, earnings per share (EPS) reached 4.89 USD, up 18% over the same period.

According to Financial Times, Microsoft's move shows that the company wants to control costs and streamline its apparatus in the context of pouring hundreds of billions of dollars into AI. In fact, the areas where the company is cutting back are related to devices instead of sales, marketing, cybersecurity, quantum computing, and data centers.

In addition, the move also reflects the rapidly changing nature of work at the company, forcing businesses to restructure to meet new requirements. The voluntary layoff program does not mean that Microsoft stops recruiting or cuts staff on a large scale, but is part of the process of restructuring the workforce to streamline the apparatus.

Bao Lam summary

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