Voluntary Buyouts Offered to 7% of Microsoft Employees

Microsoft is embarking on a significant initiative to reduce its workforce in the United States through its inaugural voluntary buyout program, as reported by CNBC. This program is set to be available to US employees at “the senior director level and below whose years of employment and age total 70 or higher,” potentially affecting up to 7 percent of the company’s US workforce. This strategic move indicates Microsoft’s commitment to adapting its organizational structure while providing options for employees.

As of June 2025, Microsoft employs approximately 125,000 individuals in the US, meaning that up to 8,750 employees could be offered a financial exit when the buyout program is initiated in May. While this figure is notably lower than the 15,000 layoffs that occurred in May and July of 2025, it remains a considerable reduction, particularly if a large number of employees opt for the buyout opportunity.

Microsoft’s executive vice president and chief people officer, Amy Coleman, expressed in a memo shared with CNBC, “Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support.” This statement highlights Microsoft’s intention to provide a supportive transition for those considering this option.

Engadget has reached out to Microsoft for confirmation regarding the voluntary buyout program and to gather further details as reported by CNBC. We will update this article promptly upon receiving any additional information or insights from the company.

While the layoffs in 2025 were aimed at streamlining management layers and enhancing its video game business, these upcoming cuts may be significantly influenced by AI advancements. This is not solely due to the introduction of AI tools rendering certain positions obsolete, but rather because Microsoft continues to invest heavily in AI infrastructure. The company disclosed that it allocated .5 billion for capital expenditures during the second quarter of 2026, with a substantial portion directed toward the expansion of data centers.