Microsoft introduced its first voluntary retirement program for U.S.-based employees. The offer targets workers at the senior director level and below whose combined age and years of service total 70 or more. This program affects an estimated 7% of the company's U.S. workforce.
Eligible employees will receive notification on May 7. Workers have 30 days to accept the one-time offer.
The move aims to control costs as Microsoft increases investments in AI infrastructure. Concurrently, the company is decoupling stock awards from cash bonuses. This change provides managers with more flexibility to reward high-performing staff as the industry adapts to artificial intelligence.