Microsoft has introduced a one-time voluntary retirement program for some U.S. employees for the first time in its 51-year history, a move closely related to the rapid development of artificial intelligence and ongoing tech layoffs. According to a company memo released on Thursday, eligible employees include executives and staff at lower levels who have worked at the company for many years and whose age plus years of service total 70 or more. This accounts for about 7% of Microsoft's total U.S. workforce, with an estimated 8,750 employees qualifying.
Eligible employees and their managers will be notified on May 7th and given 30 days to respond. It is worth noting that employees participating in sales incentive programs are not eligible for this plan. In the memo, Amy Coleman, Microsoft's Chief Human Resources Officer, stated that the program aims to provide long-serving employees with an option to take a new step in their lives at a time of their choosing, supported by generous assistance from the company.
Coleman also mentioned changes to Microsoft's compensation system, including reducing the number of salary grades from nine to five and separating stock rewards from bonuses, allowing management to use stock rewards more flexibly to recognize employees who have made outstanding contributions. She said, "This approach enables managers to more effectively and flexibly acknowledge high-performing employees."
At the same time, the wave of layoffs in the technology industry continues. Although voluntary retirement programs are common in traditional manufacturing and telecommunications industries, tech giants usually prefer to streamline their workforce through layoffs, stricter performance evaluations, and office return policies. Last year, Microsoft laid off more than 15,000 employees, including 9,000 employees laid off in July. In addition, Meta announced this week plans for a new round of layoffs, aiming to cut up to 8,000 positions. Amazon also announced in January that it would lay off 16,000 employees. Many companies attribute these layoffs to the increasing development of artificial intelligence.
Key Points:
💼 Microsoft launches a voluntary retirement program for the first time, with an estimated 8,750 employees qualifying.
📉 The wave of layoffs in the technology industry continues, with Microsoft laying off over 15,000 employees last year.
🤖 Accelerated development of artificial intelligence has become an important factor in company layoffs and adjustments.
