Microsoft offers buyout for up to 7% of U.S. employees

Source: TechCrunch

Overview

Microsoft is offering voluntary retirement buyouts for the first time in its 51‑year history, according to reports from CNBC and Bloomberg.

Eligibility

Employees are eligible for the buyout if the sum of their age and their years of service at Microsoft is 70 or more, with some exceptions. For example, a 52‑year‑old employee with 18 years of service would meet the criteria.

Context

The program provides Microsoft with a way to reduce headcount that is less abrupt than mass layoffs. In recent years, the company has conducted several rounds of layoffs affecting thousands of workers, most recently cutting 9,000 jobs last summer.

Impact

• Microsoft had an estimated 125,000 U.S. employees as of June.
• The buyouts would apply to roughly 7 % of the U.S. workforce, or about 8,750 employees.

TechCrunch has reached out to Microsoft for comment.