Microsoft reportedly offers voluntary retirement program for 7% of US workforce

Microsoft is reportedly introducing a one-time voluntary retirement program for US employees, potentially impacting up to 7% of its workforce.

This marks Microsoft’s first voluntary redundancy offer in the company’s over 50 year history.

According to an internal memo reviewed by The Verge, the program is available to employees at the senior level or below whose age and years of service total at least 70.

Employees on sales incentive plans are not eligible. Qualified employees and their managers will receive full program details on May 7, 2026.

Microsoft executive vice president and chief people officer Amy Coleman stated the program is intended to give eligible staff “the choice to take that next step […] with generous company support.”

Reports suggest that Microsoft is also revising its stock reward structure, moving away from linking stock directly to cash bonuses. This aims to give managers “more flexibility to recognise high performance,” wrote Coleman.

This program follows Microsoft’s decision to lay off more than 15,000 employees last year.

In the gaming division, this included closing The Initiative, canceling the Perfect Dark reboot and Rare’s Everwild, as well as several unannounced projects.

Raven Software and Turn 10 Studios also faced layoffs, with nearly half of Turn 10’s staff reportedly affected.

Yesterday, it was announced that Microsoft Gaming will revert to the Xbox name as part of a new mission statement shared with staff.

In a memo to employees, CEO Asha Sharma and CCO Matt Booty said Microsoft Gaming “describes our structure, but it does not describe our ambition.”

The executives stated that Xbox’s “new north star” will be daily active players, with a focus on enhancing hardware, content, experiences, and services.