For the first time in its history, Microsoft is offering voluntary buyouts to a section of its workforce in the US. The development comes at a time when the company is undergoing sea change owing to its massive and sustained investments in artificial intelligence (AI).
Reportedly, the new programme is aimed at employees who meet Microsoft’s ‘rule of 70’. According to this rule, employees’ age combined with years of service at the company must total at least 70. This criterion is reportedly designed to target long-tenured staff, giving them the option to exit with financial incentives. According to Microsoft, about seven per cent of its employees in the US would qualify for this buyout scheme.
The software giant said that the move is intended to provide greater flexibility for employees who may be considering retirement or a transition out of the company. Moreover, it also aligns with broader internal changes as the tech giant reallocates resources toward high-priority areas such as AI development and cloud infrastructure. The company has been accelerating its investments in data centres to supply its cloud clients with computing power that can handle generative AI models.
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