Microsoft stuns workforce with first-ever voluntary buyout plan for 7 pct of U.S. employees: Reports

Around 7% of Microsoft’s U.S. workforce is reportedly eligible for the one-time retirement program, according to a person familiar with the matter cited by CNBC.

The program, announced in an internal memo on Thursday, will be open to U.S.-based employees at the senior director level and below whose combined age and years of service total 70 or more.

Eligible employees and their managers are expected to receive detailed information on May 7.

However, employees working under sales incentive plans will not be allowed to participate, the report said.

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Amy Coleman, Microsoft’s Executive Vice President and Chief People Officer, wrote in the memo reviewed by CNBC.

In addition to the buyout plan, Microsoft is also revising its employee compensation structure. The company will no longer require managers to directly link stock awards to cash bonuses during annual performance reviews, CNBC reported.

The move comes as several major tech firms continue restructuring operations amid the growing impact of AI on the workplace.

Meta, for instance, is preparing to cut nearly 10% of its workforce — approximately 8,000 employees — while also shutting down around 6,000 open positions.

According to a memo by Meta’s Chief People Officer Janelle Gale, published by Bloomberg and confirmed by CNN, the layoffs are expected to take effect on May 20.

“We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” Gale wrote in the memo.