Meanwhile, Nike unveiled a new round of job cuts as part of the shoemaker’s ‘Win Now’ turnaround strategy.
Microsoft will offer voluntary buyouts to some of its U.S. staff as the software titan adapts to the artificial intelligence (AI) climate.
The company outlined a one-time retirement offer for employees at the senior-director level whose combined age and years of service reach 70 or more, a Microsoft representative confirmed to The Epoch Times. Employees on sales-incentive plans are excluded.
Eligible personnel will receive more information on May 7.
Microsoft is also reviewing how it grants stock as part of annual rewards and streamlining manager evaluations, reducing the number of pay options from nine to five.
This comes as Microsoft and the wider technology industry grapple with the AI boom. The 51-year-old software firm has been accelerating its capital expenditures on data centers.
At the same time, the so-called software scare—or SaaSpocalypse—has harmed these stocks. Investors fear that advanced AI-driven coding tools from the likes of Anthropic could adversely affect Microsoft and its competitors.
Shares of Microsoft are down about 11 percent this year.
But while smaller software firms could be under threat, Microsoft is not in the same situation, says Ken Mahoney, president and CEO of Mahoney Asset Management.
“The market started to realize that software was an issue and that powerful AI was disrupting that industry,” Mahoney said in a note emailed to The Epoch Times.
“Many software companies with smaller moats were already vulnerable, and that group really got pounded on fears,” he added. “We still believe Microsoft is a baby being thrown out with the bathwater situation.”
Meta Workforce Reduction
Meta Platforms is laying off about 8,000 workers—or about 10 percent of its workforce—the company confirmed to The Epoch Times.
The Mark Zuckerberg-led company will also leave approximately 6,000 positions unfilled.
The decision comes as Meta is pursuing greater efficiency and supporting new investments across its business. Its capital expenditures this year are expected to balloon to as much as $135 billion, fueled by AI-related infrastructure spending and employee compensation.
By Andrew Moran
