Overview
- Microsoft, which disclosed the plan Thursday in an internal memo, will offer a one-time retirement buyout to U.S. staff who meet a “Rule of 70” and are at or below the senior director level, with sales-incentive roles excluded.
- About 7% of its U.S. workforce, roughly 8,750 people out of 125,000, are expected to qualify in what the company describes as a first for its 51-year history.
- Eligible employees and their managers will receive full terms on May 7 and have 30 days to decide, with the program slated to take effect in Microsoft’s fiscal fourth quarter ending June 30.
- Microsoft is also overhauling pay practices by separating stock awards from cash bonuses and cutting manager pay options from nine to five to give teams clearer, simpler ways to reward performance.
- Investors pushed shares down nearly 4% Thursday after the disclosure, as employees weigh still-undisclosed payout and healthcare details and reporting indicates there will be no non-compete limits for those who accept.