Microsoft announces first voluntary retirement program in 51-year history, targets ~8,750 US employees

Microsoft announced on April 23, 2026 the first voluntary retirement program in its 51-year history, targeting roughly 8,750 US employees (7% of its 125,000 US workforce). Eligibility is based on a Rule of 70 formula: age + years of service >= 70, open to US employees at senior director level and below (Level 67). Notifications go out May 7 with decisions due within 30 days. The move follows Microsoft laying off 15,000 employees in 2025, and comes as the company spent $37.5 billion in the December quarter on data centers and AI infrastructure. Microsoft is also restructuring compensation, reducing pay levels from nine to five and decoupling stock awards from bonuses.