Microsoft is said to have introduced a voluntary retirement program affecting 7% of its workforce in the United States

Microsoft is reportedly set to launch a voluntary retirement initiative in the US, which could affect up to 7% of its current workforce.

This initiative represents the first time the company has offered a voluntary redundancy package in its history spanning more than five decades.

An internal communication, examined by The Verge, indicates that eligibility is granted to employees at or below the senior level, provided their combined age and years of service equal or exceed 70.

Those on sales incentive plans will not qualify for this program. Comprehensive details will be delivered to eligible employees and their supervisors on May 7, 2026.

Amy Coleman, Microsoft's executive vice president and chief people officer, explained that this initiative aims to allow eligible staff to transition with the assistance of a generous support package from the company.

Additionally, reports show changes in Microsoft’s approach to stock compensation, shifting away from directly tying stock to cash bonuses. This adjustment is intended to provide managers with enhanced flexibility in recognizing and rewarding standout performance, noted Coleman.

The introduction of this program follows a previous year's decision by Microsoft to reduce its workforce by over 15,000.

In the area of gaming, these cuts resulted in the closure of "The Initiative," halting work on the Perfect Dark reboot and Rare's Everwild, among other unannounced projects.

Both Raven Software and Turn 10 Studios were affected, with reports stating that nearly 50% of Turn 10's employees experienced layoffs.

Furthermore, it was recently announced that Microsoft Gaming would resume using the Xbox name, as part of a strategic vision outlined for employees.

In a joint memo to staff, CEO Asha Sharma and CCO Matt Booty mentioned that the designation “Microsoft Gaming” accurately portrays the organization but fails to capture the broader vision.

They further stated that Xbox's renewed focus will center on daily active players, aiming to elevate hardware, content, user experiences, and services.