Microsoft Announces Voluntary Retirement Program for Eligible U.S. Employees
Microsoft introduces its first voluntary retirement buyout program, targeting approximately 7% of its U.S. workforce, as part of a strategic workforce adjustment.
Microsoft has initiated its first voluntary retirement buyout program in its 51-year history, aiming to reduce its U.S. workforce by approximately 7%, or about 8,750 employees. The program is available to U.S. employees at the senior director level and below, whose combined age and years of service at Microsoft total 70 or more. Employees on sales incentive plans are excluded from this offer.
In an internal memo, Amy Coleman, Microsoft's Executive Vice President and Chief People Officer, stated,
"Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support."
This initiative follows several rounds of layoffs in recent years, including a reduction of 9,000 jobs last summer. The voluntary buyout offers an alternative approach to workforce reduction. Additionally, Microsoft is revising its compensation structure by decoupling stock awards from cash bonuses, providing managers with greater flexibility in rewarding high-performing employees.