Microsoft plans first-ever voluntary employee buyout for up to 7% of U.S. workforce
The program covers a small percentage of U.S. staff and comes as Microsoft also simplifies pay levels and stock awards for managers.
- On Thursday, Microsoft announced its first-ever voluntary retirement program for U.S. employees in the company's 51-year history, targeting workers at the senior director level and below.
- Following several rounds of layoffs that cut 9,000 jobs last summer, the software giant is navigating significant industry shifts sparked by the artificial intelligence boom.
- Eligible U.S. workers must have combined age and tenure totaling 70 or higher; the program applies to 7% of the U.S. workforce, or about 8,750 employees.
- Microsoft is also adjusting annual rewards, simplifying pay levels from nine to five. HR chief Amy Coleman wrote that "managers have more flexibility to meaningfully recognize high performance."
- Technology peers like Alphabet, Amazon, and Anthropic are also adapting to market pressures as Microsoft continues ramping up capital spending on data centers for generative AI models.
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Microsoft offers about 7% of its workforce in the United States the option of early retirement, the most recent attempt by a major technology company to reduce its size while increasing investments in artificial intelligence.
Microsoft targets about 7% of its U.S. workers with buyout offer | Honolulu Star-Advertiser
SEATTLE >> Microsoft offered early retirement to thousands of long-serving employees Thursday as it looks to thin its ranks amid major investments in artificial intelligence, according to an internal email from Amy Coleman, Microsoft’s chief people officer.
Microsoft offering voluntary retirement to thousands of employees
A first for Microsoft – the company is offering a one-time voluntary retirement package. According to a report from GeekWire, buyouts will be offered to senior directors and below, whose years of service at the company, plus age, add up to 70 or more. “It’s very interesting because you usually don’t expect technology companies to be using early retirement plans,” said Joe Phillips, an economics professor at Seattle University. “Then the other is…
Microsoft to offer voluntary retirement to thousands of US employees for the first time
Microsoft is offering about 7% of its US workforce the option to retire early, the latest attempt by a major tech firm to downsize while ramping up artificial intelligence investments.
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