Microsoft Offers Voluntary Retirement to 7% of US Workers
Microsoft is offering voluntary retirement to approximately 7% of its US workforce, roughly 8,750 employees out of 125,000, in the first-ever program of its kind in the company’s 51-year history. Using a "Rule of 70" formula (age + years of service), senior director level and below employees are eligible if their combined total equals 70 or more. Workers on sales incentive plans are excluded.
Key Points:
- Eligible employees will learn details on May 7th and have 30 days to decide.
- The package includes a financial payout and extended healthcare.
- Chief People Officer Amy Coleman stated, "Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support."
Background:
This move follows:
- Over 15,000 layoffs in 2025.
- A March 2026 hiring freeze (excluding AI and Copilot teams).
- Significant investment in AI infrastructure, exceeding $80 billion.
- Strong financial performance, with Q2 FY 2026 revenue of $81.3 billion, up 17% year-over-year.