Microsoft Extends Early Retirement Offer to a Quarter of Its Workforce Amid Continued Cuts

Microsoft has reduced its headcount by nearly 19,000 over the past two years, although rehiring has left the net reduction closer to 5,000. Even so, the company is preparing another round of workforce changes.

Microsoft Plans Early Retirement Offer for 25% of Employees

The program is global rather than limited to the U.S. or Washington state. According to Geekwire and company sources, roughly 60,000 employees, including some managers, may be invited to leave through an early retirement package.

The move comes in response to broader economic pressures, Geekwire reported:

"Like its peers, Microsoft is under pressure from Wall Street to hold down operating expenses as it pours tens of billions of dollars into data centers and AI infrastructure."

The Offer Will Cover Workers Across Several Countries

The program is known as the Voluntary Exit Offer and follows the company’s standard severance formula, with payouts tied to tenure and job level. It also includes stock vesting, limited healthcare coverage, and job transition support.

The offer will apply to selected employees in the U.S., Canada, the U.K., and India.

Microsoft Expects Lower Participation Than a Previous Program

Company officials do not expect participation to match an earlier voluntary retirement plan, when about 30% of eligible workers, or an estimated 18,000 employees, accepted the offer.

They also said the program is not intended to replace any future layoffs, which many observers believe may continue depending on the company’s goals, upcoming projects, and economic conditions. The report did not say how many Washington state workers would be included.

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