Microsoft Offers Voluntary Buyouts to Around 60,000 Employees in Historic First

Microsoft is offering voluntary retirement buyouts to around 60,000 employees, according to an internal memo, marking the first program of its kind in the company's 51-year history. The buyout offer is part of a broader cost-cutting effort as the company, like much of the tech industry, looks to reduce overhead while sustaining heavy investment in artificial intelligence.

Eligibility is based on a formula combining years of service and age, with employees whose combined total reaches 70 or more qualifying for the program. That works out to roughly 7% of Microsoft's U.S. workforce, or more than 8,500 domestic employees. The memo was sent by Amy Coleman, Microsoft's EVP and chief people officer, who wrote that the program is intended to give qualifying employees the choice to leave "on their own terms, with generous company support." Full program details will be distributed to eligible employees and their managers on May 7, after which a 30-day decision window opens.

The announcement came the same day Meta disclosed plans to cut 10% of its own workforce, roughly 8,000 employees, and said it would leave 6,000 open roles unfilled, underscoring a broad industry-wide push to trim costs. More than 90,000 tech workers have faced job cuts so far in 2026 as companies redirect spending toward AI infrastructure.