Microsoft has introduced its first-ever voluntary retirement (buyout) programme in its 51-year history, offering eligible US employees an option to leave the company with a financial package. The move is expected to affect up to 7% of Microsoft’s US workforce, or roughly 8,000–8,750 employees.
According to internal communications, the programme is aimed at employees at the senior director level and below whose age and years of service combined equal 70 or more. For example, an employee aged 55 with 15 years at the company would qualify. Certain roles, including some sales positions, are excluded.
The company said the initiative is intended to give long-serving employees a voluntary and supported exit option, rather than relying on traditional layoffs. Eligible staff and managers will receive full details in early May.
The move comes at a time when Microsoft, like several other major tech firms, is undergoing structural changes driven by heavy investment in artificial intelligence and cloud infrastructure. The company has been spending billions to expand data centre capacity and AI capabilities, while also tightening operational costs elsewhere.
In recent years, Microsoft has already gone through multiple rounds of job cuts. This new buyout programme is seen as another step in reorganising its workforce to better align with long-term strategic priorities, especially AI-focused growth.
At the same time, Microsoft is also adjusting its compensation structure, including changes to how stock awards are distributed and giving managers more flexibility in rewarding performance.
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