Microsoft has launched a large-scale voluntary retirement programme in the United States. The company is offering buyouts to thousands of employees as part of a broader workforce adjustment strategy, Bloomberg reported.
Around 7% of the company’s US workforce will be eligible for the scheme, the report stated. With about 125,000 employees in the US as of June 2025, this could translate to roughly 8,750 workers qualifying for the offer.
The one-time programme will be open to employees at the senior director level and below, provided their age and years of service combined total at least 70. However, employees on sales incentive plans and certain senior roles will not be eligible, according to an internal memo cited by CNBC.
The offer was communicated to staff on Thursday in 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,” she wrote.
Alongside the buyouts, Microsoft is also revising its compensation structure, particularly how it distributes stock-based rewards. Under the new approach, managers will no longer be required to directly tie stock grants to cash bonuses, signalling a shift in how employee incentives are structured.
The move comes as major technology firms continue to recalibrate costs amid heavy investments in artificial intelligence infrastructure. Microsoft, one of the frontrunners in the AI race, has been spending billions of dollars to build data centres globally and expand its capabilities.
Reducing headcount has become a common cost-control measure across the sector. Microsoft itself has conducted multiple rounds of layoffs since early 2023. Other tech giants, including Meta Platforms and Oracle Corporation, have also implemented sweeping job cuts over the past year as they balance rising AI investments with profitability pressures.