Technology corporation Microsoft plans to lay off approximately 4,800 employees to redirect funds into artificial intelligence development, as reported by The Verge.
According to the publication, Chief Human Resources Officer Amy Coleman distributed a memo among staff regarding these cuts. The reductions will affect 1,600 employees from the Xbox gaming division and around 3,200 workers from the sales department. These individuals represent 2.1% of the company’s total workforce.
“I want to make it clear that the positions eliminated today will not be replaced by artificial intelligence,” Coleman emphasized.
She further noted that the decision was not an easy one for the company, and the corporation is “constantly seeking ways to reduce the need for job eliminations.” Where possible, some employees are being reassigned to other roles aligned with the company’s current priorities and most promising areas.
Additionally, Microsoft attempted to avoid layoffs through a voluntary retirement program. Employees in the United States whose combined years of service at the company and age total at least 70 are eligible for this voluntary retirement option. In such cases, they receive a one-time severance payment and a six-month period to exercise unvested stock options. Furthermore, they retain access to the corporation’s health insurance for the next five years. More than 30% of eligible staff took advantage of this opportunity.
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