Microsoft will introduce a voluntary retirement program for the first time in its 51-year history.
CNBC reported on April 23 that the one-off program targets U.S. employees at senior director level and below whose combined age and years of service total 70 or more.
Eligible employees and their managers will receive details on May 7. Employees covered by sales incentive programs cannot participate.
Microsoft is also overhauling its compensation and evaluation systems. It will change annual compensation so managers do not directly link stock awards to cash bonuses. It will also cut the number of options managers can choose from when determining employee pay to 5 from 9.
Amy Coleman (에이미 콜먼), Microsoft executive vice president and chief people officer, said in an internal memo the program is intended to give eligible employees a chance to choose their next step with company support. She explained the compensation changes would allow managers to recognize strong performance more flexibly.
Microsoft reduced costs through several rounds of layoffs last year. As of June 2025, it had 228,000 employees.
Chi-gyu Hwang
delight@d-today.co.kr