Microsoft will offer voluntary retirement buyouts to U.S. employees whose combined age and years of service total 70 or more. The program targets up to 7% of the company’s U.S. workforce. Employees must submit their interest by May 15, with final decisions expected by June 30.
The buyout package includes a severance payment equal to one week of base pay for each year of service, plus six months of healthcare coverage. Microsoft did not disclose the total number of employees eligible but stated the program is part of a broader restructuring effort. CEO Satya Nadella emphasized the move aligns with the company’s goal of maintaining agility in a competitive tech market.
Industry analysts note that voluntary buyouts are a common strategy for companies seeking to adjust staffing levels without forced layoffs. Microsoft’s last major buyout program in 2023 affected around 5% of its workforce. This year’s initiative reflects ongoing shifts in the company’s business priorities, particularly in cloud and AI divisions.
Employees who accept the offer will receive career transition support, including resume assistance and job placement services. Microsoft has not confirmed whether future buyout programs will follow the same criteria or timeline.
Source: techcrunch.com