Microsoft starts unprecedented voluntary redundancy program

Published: 2026-04-23 13:47:44 ET MSFT

Microsoft has announced the implementation of a voluntary separation program, a first for the group, amid a broader technological shift driven by the rise of artificial intelligence. The scheme could affect up to 7% of its US workforce and targets employees at or below the senior director level, subject to seniority and age requirements. Details will be communicated to eligible employees starting May 7.

Esteban Tesson

Published on 04/23/2026 at 01:47 pm EDT

This initiative comes as Microsoft ramps up investment in infrastructure, particularly the data centers required for the development of generative AI. Like other major industry players, the group is realigning its priorities in response to market shifts and pressures on software operations. The company employed approximately 228,000 people as of June 2025, including 125,000 in the United States, following several rounds of layoffs.Concurrently, Microsoft is modifying its compensation system to provide managers with greater flexibility by decoupling stock awards from cash bonuses. The group is also simplifying its internal review processes to better reward individual performance. According to management, the program aims to support employees in their career transitions while adapting the organization to the industry's emerging challenges.