Microsoft is offering voluntary retirement buyouts to a portion of its U.S. workforce for the first time in its 51-year history, according to reports from CNBC and Bloomberg.
An internal memo indicates the program targets employees whose age and years of service at the company total 70 or more. Some exceptions to this rule may apply.
For example, a 52-year-old employee with 18 years of service at the tech giant would qualify for the package.
TechCrunch reports the buyouts could affect up to 7% of Microsoft's U.S. headcount. Based on an estimated 125,000 U.S. employees as of June, this move targets roughly 8,750 individuals.
Reducing headcount without mass layoffs
The strategy provides Microsoft a way to reduce staff numbers without the friction of traditional mass layoffs. The company has previously conducted several rounds of job cuts affecting thousands of workers.
Last summer, Microsoft cut 9,000 jobs in its most recent major reduction. This new voluntary program offers an alternative path for departing staff.
TechCrunch has reached out to Microsoft for comment regarding the internal memo and the scope of the buyouts.
