Microsoft plans voluntary buyouts for up to 7% of its US workforce

Microsoft is offering voluntary retirement buyouts for the first time in its 51-year history, according to reports from CNBC and Bloomberg.

An internal memo reportedly states that employees will qualify if the sum of their age and years of service at Microsoft equals 70 or more, with certain exceptions. For example, a 52-year-old employee with 18 years at the company would be eligible for the buyout program.

The initiative gives Microsoft a way to reduce its workforce in a less disruptive manner compared to mass layoffs. Over the past few years, the company has gone through multiple rounds of job cuts affecting thousands of employees, most recently eliminating 9,000 roles last summer.

Microsoft had an estimated 125,000 employees in the United States as of June. The voluntary buyout program would reportedly apply to aabout7% of its U.S. workforce, approximately 8,750 employees.

The move highlights Microsoft’s broader effort to manage staffing levels while navigating ongoing restructuring and cost optimisation across its global operations.