Microsoft has offered buyouts to about 7 percent of its U.S. workforce, according to an internal memo cited by CNBC and Bloomberg.
The company had around 228,000 employees as of June 2025, including about 125,000 in the U.S., based on a filing with the Securities and Exchange Commission (SEC). That means roughly 8,750 U.S. employees could be affected.
The offer is open to employees at the senior director level and below, as well as those whose age and years at the company together add up to at least 70.
Microsoft’s shares fell more than 4 percent on Thursday afternoon, as software stocks saw broader declines. Details of the buyout will be shared with eligible employees and their managers on May 7, CNBC reported.
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In the past, Microsoft’s severance packages have included 12 weeks of base pay, plus two additional weeks for every year of service. The final amount can vary based on tenure and role. When the company cut 10,000 jobs in 2023, CEO Satya Nadella said affected employees would also receive six months of healthcare, stock vesting, and 60 days’ notice along with severance. For example, a long-time employee with a salary of $180,000 could receive a package close to that amount, though senior employees may get more.
The move comes as Microsoft ramps up spending to build more data centers and expand its AI offerings, at a time when demand has been hard to keep up with. Along with peers like Apple, Meta, Amazon, and Alphabet, the company sharply increased capital spending last year. Together, these firms spent about $383 billion in 2025, up by $45 billion from the previous year. Analysts expect that number to rise by more than $100 billion in 2026, nearing $500 billion.
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Microsoft alone is expected to more than double its spending from $44.5 billion in 2024 to around $98 billion in 2026. CFO Amy Hood has said the company is trying to balance these rising costs while meeting growing demand.
Buyouts like this are not new in the tech industry. When Meta cut over 11,000 jobs in November 2022, CEO Mark Zuckerberg said employees would get 16 weeks of base pay, plus two weeks for each year of service, along with remaining paid time off, six months of health insurance, and three months of career support.
Similarly, Google offered buyouts in its HR department last year. Mid- and senior-level employees were said to receive up to 14 weeks of pay, along with an extra week for every year they had worked at the company.