Microsoft employees in the United States are expected to soon receive voluntary buyout offers from the company. This marks the first time Microsoft has planned a voluntary employee buyout, and it comes as the software giant invests billions of dollars in AI projects.
According to a memo seen by CNBC, about 7 percent of Microsoft employees in the U.S. are eligible to participate in the program. It remains unclear whether Microsoft will extend a similar offer to its staff outside the United States. The offer is available to employees at the senior director level and below whose combined years of service and age equal 70 or more.
Further details will be announced in May. It is also noted that employees with sales incentive plans are not eligible.
Amy Coleman, Microsoft’s executive vice president and chief people officer, said in the memo: “Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support.”
CNBC also reported that Microsoft will no longer require managers to tie stock awards directly to cash bonuses. Coleman said this new approach gives managers greater flexibility in recognizing high performance. Additionally, the company is simplifying the review process by allowing managers to choose from five pay options for employees, down from nine.
Microsoft has recently committed tens of billions of dollars to AI investments. Among its latest commitments are $7.9 billion in the UAE, 19 billion CAD in Canada, and $17.5 billion in India. The company has also signed a $9.7 billion contract with data-center firm IREN to supply computing power.
Microsoft has carried out multiple rounds of layoffs since 2025, and the trend is expected to continue this year as the company deepens its pivot toward AI. Slashing jobs has become a common solution for companies seeking to fund their AI ambitions.
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