Microsoft Plans First-Ever Voluntary Employee Buyout

Source: Slashdot

Voluntary Employee Buyout Program

Microsoft plans to offer voluntary buyouts for the first time. According to CNBC:

• About 7 % of U.S. employees are eligible.
• The program is available to U.S. workers at the senior director level and below whose years of employment plus age total 70 or higher.
• Further details will be provided on May 7.

Last year Microsoft removed some costs through multiple rounds of layoffs. As of June 2025, the company had 228,000 employees.

“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’s Executive Vice President and Chief People Officer, in a memo viewed by CNBC.

Changes to Stock Rewards and Review Process

Microsoft is adjusting how it distributes stock to employees for annual rewards. The company will no longer require managers to tie stock directly to cash bonuses, giving managers more flexibility to meaningfully recognize high performance, according to Coleman.

Additionally, the review process for managers is being simplified: managers can now choose from five pay options for employees instead of nine.