In a significant workforce move, Microsoft is rolling out its first-ever large-scale voluntary buyout programme, offering retirement to thousands of employees in the United States, according to reports.
Around 7% of its US workforce—roughly 8,750 employees—could be eligible under the scheme, a person familiar with the matter told Bloomberg. The company had about 125,000 employees in the US as of June 2025.
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The one-time programme will be open to employees at the senior director level and below, provided their combined age and years of service equal at least 70, CNBC reported, citing an internal memo. However, employees on sales incentive plans and certain senior roles are excluded.
The offer was communicated to staff on Thursday through a memo from Chief People Officer Amy Coleman.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman wrote.
Alongside the buyouts, Microsoft is also revamping its stock-based compensation model.
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Managers will no longer be required to directly tie stock grants to cash bonuses, marking a shift in how employee rewards are structured.
The move comes as major tech firms tighten costs while investing heavily in artificial intelligence infrastructure.
Microsoft, which is rapidly expanding its global data centre footprint, has undertaken multiple rounds of layoffs since early 2023.
Other industry giants like Meta Platforms and Oracle Corporation have also implemented workforce reductions amid rising AI-related expenditures.
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