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- Microsoft is offering voluntary buyouts to thousands of longtime US employees (businessinsider.com)
Microsoft Proposes Voluntary Buyouts for Eligible US Employees Amid Workforce Adjustments
Microsoft is introducing a voluntary buyout program aimed at long-tenured employees in the United States, according to an internal email obtained by Business Insider. The initiative could impact up to 7% of its US workforce, roughly 8,750 individuals from a total of 125,000 employees.
The program targets employees whose combined age and years of service at Microsoft total 70 or more-for instance, a 58-year-old with 12 years at the company would qualify. However, certain senior executives and sales personnel are excluded from eligibility. Microsoft’s Chief People Officer, Amy Coleman, described this group as a “small percentage” of the US workforce.
This voluntary buyout approach allows Microsoft to reduce headcount without resorting to large-scale layoffs. The company has experienced multiple rounds of workforce reductions in recent years amid industry-wide shifts.
While other tech firms have cited artificial intelligence as a factor in their cuts-such as Block’s 40% workforce reduction and Meta’s planned 10% layoff next month-Microsoft’s communication did not mention AI as a reason for the buyouts. Instead, it emphasized providing more retirement options for employees.
In addition to the buyout program, Microsoft is revamping its compensation and rewards structure. The company plans to move away from linking stock awards directly to bonuses, granting managers greater flexibility to recognize top performers and clarify performance expectations.
Microsoft continues to invest heavily in artificial intelligence, competing with other tech giants like Google, with capital expenditures expected to approach $100 billion this year.
The company has declined to provide additional comments on the buyout program.
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- Microsoft is offering voluntary buyouts to thousands of longtime US employees (businessinsider.com)