Microsoft offers first voluntary buyout to 7% of US workforce
Original: Microsoft plans first-ever voluntary employee buyout for up to 7% of U.S. workforce
Why This Matters
Signals workforce optimization strategy as tech industry adapts to AI disruption
Microsoft announced its first voluntary retirement program for US employees, targeting about 7% of workforce. Eligible workers at senior director level and below with combined age and employment years of 70+ can participate starting May 7.
Microsoft introduced a voluntary retirement program for approximately 7% of its US workforce, marking the first such initiative in the company's 51-year history. The program targets employees at senior director level and below whose age and years of employment total 70 or more. Eligible employees will receive program details on May 7, though those with sales incentive plans cannot participate. Microsoft has 228,000 total employees, with 125,000 in the US as of June 2025. The move comes as the company increases data center capital spending for AI cloud services while facing pressure from AI coding tools threatening established software businesses. Microsoft also decoupled stock from cash bonuses in annual rewards, giving managers more flexibility to recognize high performers.