Voluntary buyouts offered to roughly 7% of Microsoft’s U.S. workforce
- Microsoft on April 23 began its first voluntary retirement program, offering one-time buyouts to eligible U.S. employees as the software company reshapes staffing after a year of heavy artificial intelligence spending. - The offer applies to about 7% of Microsoft’s U.S. workforce, or roughly 8,750 people, covering senior director-level employees and below whose age plus years of service equal at least 70. - Microsoft is pairing the buyouts with compensation changes as tech companies trim labor costs while funding bigger AI infrastructure budgets. (cnbc.com)
Microsoft has started its first voluntary retirement buyout program, opening one-time exit packages to a slice of its U.S. workforce. (cnbc.com) The program was outlined in an April 23 memo from Chief People Officer Amy Coleman and applies to U.S. employees at Level 67, the company’s senior director equivalent, and below. Workers on sales incentive plans are excluded. (geekwire.com) (cnbc.com) Eligibility uses a “Rule of 70”: an employee’s age plus years at Microsoft must total at least 70. CNBC reported that about 7% of Microsoft’s U.S. staff qualify. (cnbc.com) Microsoft said in its fiscal 2025 annual report that it had 228,000 full-time employees worldwide, including 125,000 in the United States. That puts the eligible pool at roughly 8,750 people. (sec.gov) (forbes.com) The offer stands out because Microsoft had not previously used a companywide voluntary retirement program in its 51-year history. The move gives the company a way to reduce headcount without ordering another broad layoff round. (reuters.com) (cnbc.com) It also lands as Microsoft keeps pouring cash into artificial intelligence infrastructure, including data centers and chips needed to run cloud and AI services. Tech companies have been cutting jobs while protecting spending tied to AI. (cnbc.com) (computerworld.com) The buyouts were announced alongside changes to how Microsoft handles pay and stock awards. CRN reported the company is reducing stock award levels from nine to five and separating stock grants from bonus decisions. (crn.com) Employees who qualify are set to be notified on May 7 and will have 30 days to decide whether to take the package. Coleman said in the memo that Microsoft hopes eligible workers can make that choice “on their own terms.” (geekwire.com) (usnews.com)
