Microsoft to Offer First Voluntary Buyout in 51 Years, Absorbing AI Transition Costs Through Workforce

[Financial News, New York = Reporter Lee Byung-chul]Microsoft Corporation will introduce a voluntary retirement, or buyout, program for some employees in the United States to ease the cost burden from expanding investment in artificial intelligence (AI). It is the first such measure since the company was founded 51 years ago, signaling a full-scale restructuring of its workforce during the AI transition.
According to major foreign media outlets, including CNBC, Microsoft said on the 23rd that it will implement a one-time retirement program for some U.S. employees. Under the plan, about 7% of its total U.S. workforce is expected to be eligible. The move follows last year's decision to lay off more than 15,000 employees.
The program will apply to employees at the senior director level and below whose combined years of service and age total 70 or more. Affected employees and their managers will receive details on May 7. However, employees covered by sales incentive-based compensation plans will be excluded.
Microsoft is rapidly increasing data center investment to meet growing demand for generative AI. The move is aimed at providing cloud customers with high-performance computing capacity.
Microsoft emphasized that the program is designed to give employees a choice.
In an internal memo obtained by CNBC, Chief People Officer Amy Coleman said, "The goal is to allow employees to choose their next step on their own, with sufficient company support."
The company will also revise part of its compensation system. It plans to expand managers' discretion by adjusting stock compensation so it is not directly tied to cash bonuses, and to simplify the evaluation process by reducing compensation options from nine to five.
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pride@fnnews.com Reporter Lee Byung-chul Reporter