About 7% of Microsoft’s US workforce qualifies for the program|Robert Scoble|CC BY 2.0
For the first time, Microsoft is offering voluntary buyouts to some long-time employees in the US as it shifts focus to artificial intelligence.
Buyouts are packages where a company offers money or benefits to employees who choose to leave voluntarily, often as an alternative to layoffs.
About 7% of its US workforce qualifies for the program, which targets employees whose age and years of service should total 70 or more. The company will share details on May 7.
The move follows earlier cost cuts, including multiple layoffs last year. As of June 2025, Microsoft had 228,000 employees globally, with 125,000 based in the US.
Meanwhile, the tech giant is increasing spending on data centers to support generative AI, following rivals like Alphabet and Amazon.
The company is also revamping performance reviews, reducing pay options from nine to five, and changing stock rewards to give managers more flexibility, said executive vice president Amy Coleman.