Microsoft is planning its first voluntary employee buyout in the company's 51-year history. According to a memo, the tech giant is offering voluntary retirement to thousands of its employees in the United States. This marks a significant shift for Microsoft, which has never previously conducted buyouts of this scale.
Eligibility and Scope
As per the report, approximately 7% of Microsoft's workforce in the US will be eligible for the buyouts. As of June 2025, the company had 228,000 employees globally, with 125,000 based in the United States. This would make about 8,750 workers eligible for the program. The offer was announced to employees via a memo from Vice President and Chief People Officer Amy Coleman.
“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman wrote in the memo. Employees eligible for the buyout include personnel whose years of service plus their age totals 70 or more. The one-time retirement program excludes some senior roles or those on sales incentive plans. Eligible employees and their managers will receive details on May 7.
Additional Changes in the Buyout Memo
Microsoft is also reportedly adjusting the way it distributes stock to employees for annual rewards. The company will no longer require managers to tie stock directly to cash bonuses. This change provides “managers more flexibility to meaningfully recognize high performance,” according to Coleman. Additionally, Microsoft is simplifying the review process for managers, allowing them to choose from five pay options for employees instead of nine.
Microsoft to Revamp Windows 11
In other news, Microsoft is revamping Windows 11 by removing legacy UI elements to deliver a consistent modern design across the entire operating system. This initiative targets outdated components, including installation screens, remnants of Windows 8-era dialogs, and various Control Panel interfaces. These are being refreshed with the current WinUI framework for improved visual consistency. In a statement, Microsoft said, “Our goal as we go forward is to be more open as we build Windows, make sure you feel like you are included in the entire lifecycle of our product making process, and then make sure this is a vibrant community and we are just grateful for a chance to get some time with you all.”
