Microsoft Offers Voluntary Retirement for First Time in Company’s History

As Microsoft continues to build up its AI programs and investment, they are seeking ways to control payroll and workforce.

   The Company Will Offer Certain Workers Voluntary Retirement

This is more common in other industries, but not often found in the tech world. But Microsoft plans to offer the plan to about 7 percent of its workforce of 125,000.

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The company dropped 15,000 workers last year, by layoff. But this is different. According to Geekwire:

"The program is open to U.S. employees at Level 67 — the equivalent of senior director — and below, excluding those on sales incentive plans, whose years of service plus age total 70 or more. Eligible employees will be notified May 7 and will have 30 days to decide."

 Changes To Pay Structure Coming As Well

They are also reducing their  number of pay levels from 9 to five, and decoupling stock awards from bonuses, which officials say will allow managers to use them as rewards for long-term workers, regardless of their latest performance ratings.

This program affects about 8,750 workers, as the company continues its sizeable AI buildup.