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Microsoft has launched a one-time voluntary retirement buyout for select U.S. employees, the company announced in a memo reported on April 23, 2026.
The program â the first of its kind in Microsoftâs 51-year history â uses a âRule of 70â eligibility test: an employeeâs age plus years of service must total at least 70.
It applies to staff at the senior director level and below, excludes some salesâincentive roles, and is expected to cover about 7% of Microsoftâs U.S. workforce (roughly 8,750 of some 125,000 U.S. employees). Eligible workers and managers will receive details on May 7 and will have 30 days to decide.
Microsoftâs chief people officer Amy Coleman framed the offer as giving longâtenured employees an option to leave âon their own termsâ with company support.
The move comes after rounds of layoffs in 2025 and amid heavy capital spending on AI infrastructure and selective hiring freezes; the company is also simplifying pay tiers and decoupling stock awards from bonuses.
Financial specifics of the buyout package and healthcare provisions have not been disclosed publicly.
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The Rule of 70 buyout targets longâtenured, nearâretirement employees and is likely to reduce compulsory layoffs if uptake is high, but could deplete institutional expertise. Terms often restrict rehire and include benefits like accelerated vesting or health bridges, which will shape uptake and any subsequent staffing moves.







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