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Microsoft and Google offer exit packages as AI spending rises

The Microsoft offer covers over a quarter of the company, and Google reportedly extends similar packages in five countries.

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PrathamLead source
First Microsoft. Now Google. Microsoft opened a voluntary exit offer to about 60,000 people. That is over a quarter of the company. Google is now reportedly offering exit packages in Canada, France, Germany, Japan, and Switzerland. A few thoughts: 1. This is not a normal layoff. A voluntary offer lets a company shrink without the headline, and without the legal friction in places like France and Germany. Microsoft has also said it is not a replacement for layoffs, so I would expect both. 2. Follow the money. Microsoft expects around $175B in capex this year, mostly AI infrastructure. Data centers, chips and power are the costs going up fast. Headcount is the one line that can go down fast. 3. Voluntary has a catch. The people who take the package are often the ones with the most options.…
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How the headline evolved

  1. Microsoft and Google offer exit packages as AI spending rises

  2. Microsoft offers voluntary exit packages to 60,000 staff; Google follows

  3. Microsoft and Google offer voluntary exit packages to employees

  4. Microsoft and Google offer voluntary exit packages to employees

  5. Microsoft and Google offer voluntary exit packages as AI spending rises

  6. Microsoft and Google offer exit packages as AI spending rises

  7. Microsoft and Google offer exit packages as AI spending rises

  8. Microsoft and Google offer exit packages as AI spending rises

  9. Microsoft and Google offer exit packages as AI spending rises

  10. Microsoft and Google offer voluntary exit packages as AI spending rises

  11. Microsoft and Google offer voluntary exit packages to staff

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