Microsoft Introduces Voluntary Retirement Scheme for 7% of US Staff

Microsoft has allegedly launched a one-time voluntary retirement scheme for its US workforce, affecting up to 7% of employees. This move marks a first for the company in its over 50-year history. An internal memo reveals that the scheme is open to senior-level and below employees whose age and tenure add up to at least 70. However, employees on sales incentive plans are excluded from this offer. On May 7, 2026, eligible employees and their managers will receive detailed information about the program. According to Amy Coleman, Microsoft's executive vice president and chief people officer, the scheme aims to provide eligible staff with a choice to move forward with substantial company support. Additionally, reports indicate that Microsoft is revamping its stock reward structure to decouple stock from cash bonuses, giving managers more flexibility to recognize high performance. This development follows Microsoft's decision to lay off over 15,000 employees last year, including significant cuts in the gaming division. The gaming division saw the closure of The Initiative, cancellation of the Perfect Dark reboot and Rare's Everwild, as well as several unannounced projects. Layoffs also affected Raven Software and Turn 10 Studios, with nearly half of Turn 10's staff reportedly impacted. Recently, Microsoft Gaming announced its reversion to the Xbox name as part of a new mission statement shared with staff. In a memo, CEO Asha Sharma and CCO Matt Booty stated that Microsoft Gaming describes the company's structure but not its ambition. The executives announced that Xbox's new focus will be on daily active players, with an emphasis on enhancing hardware, content, experiences, and services.