In a historic shift for the 51-year-old tech giant, Microsoft is offering voluntary retirement buyouts to its U.S. workforce for the first time, according to media reports. The move follows several rounds of traditional layoffs over recent years, including the reduction of 9,000 roles last summer.
Under the terms of an internal memo, eligibility is determined by a “Rule of 70,” where an employee’s age and years of service must combine to a total of at least 70. For example, a 52-year-old staff member with 18 years of tenure would qualify for the package.
The initiative is seen as a strategic effort to manage headcount through a less abrasive method than mass redundancies. As of June, Microsoft employed approximately 125,000 people in the U.S.; the new buyout offer reportedly applies to 7% of that workforce, potentially affecting around 8,750 employees.
While Microsoft has not publicly detailed the specific financial incentives involved, the programme marks a significant departure from its historical personnel management as the company continues to navigate shifting economic priorities and its pivot toward AI-driven infrastructure.
