Microsoft rolls out its first large-scale buyout program as AI spending climbs

Microsoft is trying something it has never done at this scale in its 51-year history: asking employees to leave on their own terms. The company has launched a voluntary retirement and buyout program aimed at roughly 7% of its US workforce. It is a cost-cutting move that arrives as Microsoft prepares to spend heavily on artificial intelligence infrastructure. How the Rule of 70 works The program was first laid out in an internal memo from Chief People Officer Amy Coleman on April 23, 2026. Additional details followed on May 7, 2026. It targets approximately 8,750 employees. For scale, Microsoft counted 125,000 US staff as of June 2025. Eligibility rests on a formula the company calls the “Rule of 70.” Add an employee’s age to their years at Microsoft. If the total reaches 70 or more, they qualify. There is also a seniority ceiling. The offer is open to staff at the senior director level, which Microsoft labels level 67, or below. What departing employees get Cash severance scales with years of service and position level. The floor is 8 weeks of base pay. The ceiling is 39 weeks. Benefits extend well past the exit date. Eligible employees can keep medical, dental and vision coverage ...