Microsoft Offers Early Retirement to 8,000 U.S. Workers

Microsoft announced a voluntary early retirement program for thousands of its U.S. employees on Thursday, marking the first such buyout offer at this scale in the company's 51-year history. The initiative targets long-tenured workers and comes as the tech giant ramps up investments in artificial intelligence infrastructure amid ongoing workforce restructuring efforts.

The program will be available to U.S. employees at the senior director level and below whose combined age and years of service total 70 or more. Employees with sales incentive plans are ineligible. Details will be provided to eligible workers and their managers on May 7, giving participants 30 days to decide. Those who opt in can expect financial separation packages, including lump-sum payouts, continued salary for a transition period, and extended healthcare coverage, though specifics vary by position and tenure. The offers are set to take effect in Microsoft's fiscal 2026 fourth quarter, ending June 30.

In an internal memo obtained by news outlets, Amy Coleman, Microsoft's executive vice president and chief people officer, described the program as an opportunity for veteran staff to retire on their own terms....