Microsoft Tests a Voluntary Retirement Push to Fund Its AI Drive
Microsoft is offering a voluntary retirement package to about 7% of its US workforce (roughly 8,750 of 125,000), targeted at senior director-level and below under a 'Rule of 70' (age plus years of service), with a 30-day decision window starting May 7. The program follows 15,000+ layoffs in 2025 and a March 2026 hiring freeze (AI teams exempt) as Microsoft spends over $80 billion on AI infrastructure while posting $81.3 billion in quarterly revenue; the aim is to shrink headcount without mass layoffs and redirect savings toward AI initiatives, though it raises questions about knowledge retention and longer-term strategy.