Kamal Ghorui
Microsoft is planning its first voluntary employee buyout in the company’s 51-year history. According to a memo, Microsoft is offering voluntary retirement to thousands of its employees in the US. Microsoft has never previously done buyouts of this scale. As per the report, about 7% of Microsoft’s workforce in the US will be eligible for the buyouts. As of June 2025, the company had 228,000 employees, with 125,000 in the U.S. That would make about 8,750 workers eligible for the program.
Microsoft chief people officer Amy Coleman announces buyout in memo to employees
The offer was announced to employees via a memo from vice president and chief people officer Amy Coleman. “Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman wrote in the memo.As per the memo, employees eligible for the buyout include personnel whose years of service plus their age totals 70 or more. The one-time retirement program excludes some senior roles or those on sales incentive plans. Eligible employees and their managers will receive details on May 7.
Additional changes announced in the Buyout memo
Microsoft is also reportedly adjusting the way it doles out stock to employees for annual rewards. The company will no longer make managers tie stock directly to cash bonuses. This way, “managers have more flexibility to meaningfully recognize high performance,” Coleman wrote in the memo.Microsoft is also simplifying the review process for managers, so they can choose from five pay options for employees instead of nine.
Microsoft to revamp Windows 11
In other news, Microsoft is revamping Windows 11 by removing legacy UI elements to deliver a consistent modern design across the entire operating system. This initiative is said to target outdated components, including installation screens, remnants of Windows 8-era dialogs, and various Control Panel interfaces. These are being refreshed with the current WinUI framework for improved visual consistency. In a statement, Microsoft said, “Our goal as we go forward is to be more open as we build Windows, make sure you feel like you are included in the entire lifecycle of our product making process, and then make sure this is a vibrant community and we are just grateful for a chance to get some time with you all.”
