Microsoft is offering voluntary retirement to approximately 8,750 US employees (~7% of its US workforce) using a 'Rule of 70' formula (age + years of service), the first such programme in the company's 51-year history. Eligible employees at senior director level and below will receive details on 7 May with a 30-day decision window. The move follows 15,000+ layoffs in 2025 and a March 2026 hiring freeze that exempted AI teams. Despite reporting $81.3B in quarterly revenue and $38.5B net income, Microsoft is spending $37.5B per quarter on AI infrastructure. The programme disproportionately targets long-tenured, higher-salaried employees while AI and Copilot teams remain protected. The pattern mirrors broader Big Tech trends: Oracle, Meta, Amazon, and Atlassian have all announced significant cuts framed around AI investment. Critics note the 'AI-washing' of layoff rationales, and the piece questions what happens to institutional knowledge when experienced employees exit.
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