Microsoft wants employees to take voluntary buyouts in first-ever program
Follow UsMicrosoft offers voluntary buyouts to some U.S. employees instead of layoffs.
Around 7 per cent of staff may be eligible based on age and years of service.
The move comes as rivals like Meta plan job cuts and tech firms focus on AI growth.
Microsoft has officially announced voluntary retirement buyouts for its United States employees. For the first time in its 51-year history, the company has made such an offer. Reports indicate that eligible workers will be given an option to exit with support instead of facing abrupt layoffs seen across the technology sector. Meanwhile, Meta, one of the competitors to Microsoft in the AI space, is preparing to cut about 8,000 jobs as its next round of reductions begin. Microsoft says the program is designed to manage workforce levels in a measured way while maintaining investments in future growth areas.
SurveyThe voluntary retirement buyouts will be currently available to the US workforce of Microsoft whose age and years of service together reach at least 70. The employees who are at the senior director level and below will be eligible for this scheme. Reports also suggest that about 7 per cent of the company’s U.S. workforce will be eligible for it, which could mean roughly 8,750 employees based on earlier estimates.
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Microsoft has not yet shared the details with the staff. However, the company is said to shed more light on the matter with eligible staff and their managers on May 7. Authorities have also clarified that the employees who are part of sales incentive plans will not be included.
The software giant has reduced the number of its employees over the years through layoffs in several instances, with one of the biggest layoffs occurring during the previous summer.According to reports, by June 2025, there were roughly 228,000 people working for the company across the globe, with 125,000 of them based in the United States.
However, unlike before when the firm resorted to layoffs, it is currently being softer. Instead of layoffs, the company is using voluntary buyouts to offer its employees an opportunity to depart from the company.
The decision also reflects larger shifts across the tech sector as the companies are investing heavily in data centres to meet demand for cloud services and tools powered by artificial intelligence. Furthermore, the rivals, like Alphabet and Amazon, are also increasing spending in this area, which is adding more pressure to its competitors, like Microsoft.
Along with the buyouts, Microsoft is changing how it rewards employees. Managers will no longer have to link stock awards directly to cash bonuses, giving them more flexibility. The company is also simplifying its review system by reducing the number of pay options.
