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Microsoft Offers First Voluntary Buyouts to Long-Serving U.S. Staff

The offer signals cost control during a heavy push into AI data centers.

Overview

  • Microsoft unveiled Thursday its first U.S. voluntary retirement program, giving select long‑tenured employees a paid exit option.
  • Eligibility covers staff at Level 67 and below whose age plus years of service total 70, excluding employees on sales incentive plans, with reports estimating about 7% of U.S. workers could qualify.
  • Eligible employees and their managers will receive details on May 7 and have 30 days to decide, and the program is slated to take effect in Microsoft’s fiscal fourth quarter ending June 30.
  • Alongside the offer, Microsoft is changing pay practices by decoupling stock awards from cash bonuses and cutting manager review pay options from nine to five.
  • The company’s growing AI and data‑center spending forms the backdrop for the move, and CFO Amy Hood is expected to discuss the plan on the April 29 earnings call.