Microsoft is reportedly offering voluntary buyouts to up to 7 percent of its employees

Source: Engadget

Voluntary Buyout Program

Program scope

Microsoft is planning its first voluntary buyout program for U.S. employees at the senior director level and below whose combined years of employment and age equal 70 or higher. The initiative could cover up to 7 percent of the company’s U.S. workforce.

Timeline & potential impact

• Workforce size: Approximately 125,000 U.S. employees (June 2025).
• Potential participants: Up to 8,750 workers may be offered a paid exit when the program launches in May.
• Comparison: This figure is smaller than the roughly 15,000 employees laid off in May and July 2025, but still significant if many eligible staff accept the buyout.

Company statement

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,”
— Amy Coleman, Microsoft executive vice president and chief people officer (memo viewed by CNBC)

Engadget has reached out to Microsoft for confirmation of the voluntary buyout program and the details reported by CNBC. The article will be updated if further information is received.

Background & financial context

• 2025 layoffs: Aimed at streamlining management layers and the video‑game business.
• AI‑related spending: The new cuts may be driven more by AI‑related expenditures. Microsoft reported $37.5 billion in capital expenditures during Q2 2026, much of which was allocated to data‑center buildout for AI infrastructure.