The company announced the voluntary exit offer on Monday, marking another workforce restructuring move amid its growing focus on AI.
Voluntary exit offer for employees
The offer is available to employees in select teams in the United States, Canada, India and Britain at the vice-president level and below.
Amy Coleman, Microsoft's executive vice-president and chief people officer, described the initiative as part of the company's evolving approach to organisational change.
“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,” Coleman told employees in a memo, as quoted by NDTV.
AI investment reshapes workforce priorities
The latest move comes as Microsoft increases its focus on AI, with the company seeking to manage costs while investing in the rapidly expanding technology sector.
The workforce restructuring also comes amid broader concerns about AI-driven automation and its potential impact on employment.
Microsoft co-founder Bill Gates has warned that machine intelligence could eventually surpass human cognitive abilities, prompting companies to increasingly prioritise automation over human labour.
Gates has also cautioned that AI could take over a wide range of jobs, including white-collar professions, raising questions about the future of work as businesses adopt increasingly capable AI systems.
‘Hire the robot, fire the human’
Gates criticised the business incentives driving AI adoption, describing the approach as “hire the robot, fire the human and don’t look back”.
He warned that AI could eventually take over a wide range of jobs, including tasks involving invention and white-collar professions.
The development of humanoid robots could further extend automation into physical labour.