Microsoft Launches Voluntary Buyout Program for Up to 7% of US Workforce

Microsoft is launching its first voluntary buyout program in the US, aiming to reduce its workforce through targeted exits. According to CNBC, the program will be offered to employees at the senior director level and below whose combined years of employment and age total 70 or higher.

With approximately 125,000 employees in the US as of June 2025, the program could impact up to 7% of the workforce, translating to roughly 8,750 employees. Microsoft plans to begin the buyout program in May 2025.

This initiative follows the company’s earlier layoffs in May and July 2025, which affected around 15,000 employees. While the buyout program targets fewer workers, its success hinges on employee participation rates.

"Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support."

Microsoft has not yet confirmed the program’s details to Engadget, which reached out for verification. Updates will be provided if additional information becomes available.

Why Microsoft Is Pursuing Buyouts

The company previously cited streamlining management layers and its video game business as reasons for its 2025 layoffs. However, the new buyout program may be more closely tied to Microsoft’s aggressive investments in AI infrastructure.

In Q2 2026, Microsoft reported $37.5 billion in capital expenditures, with a significant portion allocated to data center expansion to support AI initiatives. While AI adoption has not necessarily rendered roles redundant, the company’s financial priorities suggest a strategic shift toward automation and scalable infrastructure.