Microsoft Offers Voluntary Retirement Buyouts for First Time in 51-Year History
Buyouts available to employees where age plus years of service equals 70 or more, affecting about 8,750 workers
Quick Look
- Microsoft is offering voluntary retirement buyouts for the first time in its 51-year history.
- Employees qualify if their age plus years of service equals 70 or more.
- The buyouts could affect about 8,750 employees, representing 7% of Microsoft's U.S. workforce of 125,000.
AI-generated summary
Why It Matters
Microsoft has undergone several rounds of layoffs in recent years, including 9,000 job cuts last summer. The company had approximately 125,000 U.S. employees as of June 2025. This voluntary buyout program represents an alternative approach to workforce reduction that may be less damaging to employee morale and company reputation than involuntary layoffs.
Microsoft is offering voluntary retirement buyouts for the first time in its 51-year history, per reports from CNBC and Bloomberg. According to an internal memo, employees will be eligible if their years of work at Microsoft plus their age totals 70 or more, with some exceptions. So if someone who is 52 years old has 18 years of service at Microsoft, they could qualify for the buyout. This move gives Microsoft an opportunity to reduce its headcount in a manner less abrasive than mass layoffs. Over the last few years, Microsoft has weathered several rounds of layoffs, affecting thousands of employees — most recently, the company cut 9,000 jobs last summer. The company had an estimated 125,000 U.S. employees as of June. The buyouts would reportedly apply to 7% of the U.S. workforce, which amounts to about 8,750 employees. TechCrunch has reached out to Microsoft for comment.
Open Questions
- How many employees will actually accept the buyout offer?
- What is the financial terms of the buyout package?
- Will this be a one-time offer or an ongoing program?
- How will this affect Microsoft's international workforce?
