Microsoft to offer voluntary exit programme to thousands of employees

Microsoft will, for the first time in its 51-year history, offer a voluntary exit programme to a portion of its workforce, according to reports citing internal company documents and CNBC.

The programme is expected to cover about 7% of the company’s US-based employees and will provide a one-time pension-style payment in exchange for voluntary resignation.

Eligibility will be limited to employees at or below senior director level whose combined age and years of service total 70 or more. Detailed terms are expected to be distributed on May 7.

In an internal memo, Microsoft Vice President of Human Resources Amy Coleman said the initiative is designed to allow long-serving employees “to take that next step on their own terms, with generous company support.”

Alongside the voluntary departure scheme, Microsoft is also adjusting its annual compensation structure. Managers will have greater flexibility in allocating stock awards, and the previous rigid link between stock grants and cash bonuses will be loosened.

The company is also simplifying its performance review system, reducing the number of compensation categories from nine to five, in what it describes as an effort to improve flexibility and efficiency in employee evaluation.

Bloomberg estimates that the programme could affect nearly 8,750 employees. The move comes as major technology companies continue to balance cost-cutting measures with heavy investments in artificial intelligence infrastructure.

Other AI-focused firms, including Oracle Corp. and Meta Platforms, have also implemented significant workforce reductions over the past year amid rising investment pressures in the sector.

By Vugar Khalilov