<div id="readability-page-1"><div id="ArticleBody-InlineImage-108296177"><div><div><p>A view of a Microsoft office in Shanghai, China, on April 8, 2025.</p><p>Ying Tang | Nurphoto | Getty Images</p></div></div></div><div><p><span id="RegularArticle-QuoteInBody-1">Microsoft<span><span id="-WatchlistDropdown"></span></span></span> will offer voluntary buyouts to a small percentage of its workforce, a first for the 51-year-old software giant, as the tech industry grapples with major changes sparked by the artificial intelligence boom.</p><p>The one-time retirement program, announced in a memo on Thursday, will be available to U.S. workers at the senior director level and below whose years of employment and age add up to 70 or higher. Eligible employees and their managers will receive details on May 7. Those with sales incentive plans cannot participate.</p><p>Microsoft has been ramping up capital spending on data centers to supply cloud clients with computing power that can handle generative AI models. Technology peers such as <span id="RegularArticle-QuoteInBody-2">Alphabet<span><span id="-WatchlistDropdown"></span></span></span> and <span id="RegularArticle-QuoteInBody-3">Amazon<span><span id="-WatchlistDropdown"></span></span></span> are doing the same. Meanwhile, software stocks are getting hammered as coding tools from Anthropic and others threaten to disrupt established companies. </p><p>Last year Microsoft removed some costs through multiple rounds of layoffs. As of June 2025, the company had 228,000 employees. </p><p>&#34;Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,&#34; Amy Coleman, Microsoft's executive vice president and chief people officer, wrote in a memo viewed by CNBC.</p><p>Additionally, Microsoft is adjusting the way it doles out stock to employees for annual rewards. The company will no longer make managers tie stock directly to cash bonuses. </p><p>This way, &#34;managers have more flexibility to meaningfully recognize high performance,&#34; Coleman wrote.</p><p>The company is also simplifying the review process for managers, so they can choose from five pay options for employees instead of nine.</p><p><strong>WATCH:</strong> Microsoft and CrowdStrike are favorites in the software space, says Powers Advisory's Matt Powers</p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

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<p>Microsoft is offering its first voluntary employee buyouts to senior directors and below, targeting those whose age and years of service total 70 or more. This initiative comes amid significant changes in the tech industry due to the AI boom. Eligible employees will receive details on May 7. The company is also revising its stock distribution and simplifying the performance review process for managers. This move follows previous layoffs and aims to provide employees with a choice for retirement with company support.</p>

- Microsoft is planning to offer voluntary buyouts to a small percentage of its workforce, marking the first such initiative in its 51-year history.  
- The program targets U.S. employees at the senior director level and below, allowing those whose age and tenure total 70 or more to opt-in, with details to be shared on May 7, 2025.  
- In addition, Microsoft is revising its stock reward system to enhance flexibility for managers and simplify the employee review process, aiming to improve performance recognition.

Microsoft plans first voluntary employee buyout in company's 51-year history