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Microsoft offers buyouts for longtime employees

Alex Halverson, The Seattle Times on

Published in Business News

Microsoft is offering voluntary retirements to thousands of its employees in the United States — for the first time in the tech giant’s 51 years.

The retirement program, which doesn’t have much precedent in the tech industry, is Microsoft’s latest effort to manage its head count.

The Redmond-based software maker, like other tech companies, is in the middle of a spending spree on artificial intelligence infrastructure and looking to cut costs where it can.

The voluntary retirements are a one-time offer for U.S.-based employees whose number of years at the company plus their age equals 70. Out of Microsoft 125,000’s employees, roughly 7% are eligible.

 

Microsoft chief people officer Amy Coleman said in a memo to employees Thursday that the retirement program is available for those at the senior director and below, excluding roles on sales incentive plans. Eligible employees will get more information on May 7, Coleman said.

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman said.

Over the past few years, Microsoft has conducted rounds of layoffs — large and small — to flatten its corporate structure, especially among the manager ranks. The company has said the push to trim the organization is part of a broader effort to keep the company nimble as it focuses its effort on AI. But the rising costs of investing in the technology have also driven layoffs, including last year when the company announced it was cutting roughly 15,000 jobs.


©2026 The Seattle Times. Visit seattletimes.com. Distributed by Tribune Content Agency, LLC.

 

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