Microsoft reports $36 billion quaterly profit, employees complain salary raises below 1%, describe workplace as 'joyless and demoralizing' after 60,000 people receive buyout offers

Microsoft has reported a quarterly profit of $36.6 billion, up 32% from a year earlier, even as employees say their salary raises were below 1% and describe working at the company as “joyless and demoralizing”. The complaints have surfaced alongside Microsoft's voluntary buyout offer to around 60,000 employees across India, the US, the UK and Canada, according to a TOI report.

A group of current and former employees is circulating an open letter accusing the company of prioritising artificial intelligence over its workforce, customers and environmental commitments. Workers have raised concerns about mandatory AI tools, increasing workloads, repeated reorganisations and the possibility of jobs being replaced by AI.

Microsoft employees say AI push has made work joyless

The letter, signed by “Concerned Microsoft Workers”, says workplace morale has declined as the company accelerated its AI investments.


According to a report by The New York Times, the letter began circulating among employees before the October 26 buyout announcement. It calls for workers to have a say in how AI is developed and introduced at the company.

Employees claim they are being pushed to use AI tools across almost every part of their jobs, often without adequate training or clear explanations of their benefits. They say this has created additional work, including learning new systems, correcting inaccurate AI-generated results and removing features that do not work properly.

The signatories have also questioned internal AI research and planning, raising concerns about user safety and the company's approach to getting customers to adopt AI products.

Their demands cover three areas: employee participation and protection in AI adoption, safeguards for communities affected by AI infrastructure, and maintaining Microsoft's environmental commitments.

They have specifically called on the company to retain its targets of becoming carbon negative, water positive and zero waste by 2030. The letter also raises objections to data centre projects and Microsoft's contracts with US Immigration and Customs Enforcement (ICE) and the Israeli military.

Who gets Microsoft's voluntary buyout offer?

Microsoft's Voluntary Exit Offer covers eligible employees at level 70 and below in participating teams across India, the US, the UK and Canada. Some sales and engineering teams are excluded.

Employees accepting the offer will receive at least eight weeks of base pay, with the amount increasing according to their job level and length of service.

They have until December 9 to decide, while their employment is scheduled to end on December 31.

Chief people officer Amy Coleman described the programme in an internal communication as “a new choice to make that transition now with support”.

Microsoft expects fewer than 5% of eligible employees to accept the offer.

This is the company's second buyout programme in 2026. In April, around 8,600 long-serving US employees received early retirement offers, with approximately 30% accepting them.

The company also cut around 4,800 jobs in July, including a fifth of its Xbox workforce. These reductions followed 10,000 layoffs in 2023 and more than 15,000 in 2025.

Microsoft had 223,000 employees in June, around 5,000 fewer than a year earlier.

Microsoft profit rises as employees report raises below 1%

The concerns over employee compensation have emerged alongside strong financial results.

Microsoft reported quarterly revenue of $92.3 billion and profit of $36.6 billion, representing a 32% year-on-year increase. Its capital expenditure, largely directed towards data centres, rose 30% to $45.2 billion. The company expects to spend around $170 billion during the calendar year.

Employees told The New York Times that merit-based salary increases this year were unusually small, with some receiving raises below 1%.

The issue also came up during an internal town hall last month. A question about how leadership was balancing more than $100 billion in annual AI spending against limited employee rewards received over 80 reactions, roughly twice the response to most other questions.

Gretchen Thomas, a 57-year-old design leader who left Microsoft in September after five years, told the publication that her stock award was reduced partly because she had not consistently demonstrated speed and willingness to experiment with AI.

Microsoft says buyouts are not linked to AI adoption

Coleman has said the voluntary buyout programme is not linked to changes in how AI is affecting work, according to the report. She has not ruled out further layoffs.

Some employees have also expressed concern that departing colleagues will not be replaced, potentially leaving remaining workers with additional responsibilities.

The open letter seeks greater employee involvement in Microsoft's AI decisions, along with protections for workers, communities and the environment as the company continues expanding its AI operations.

(With TOI inputs)