Microsoft has offered an early retirement program to around 7% of its global workforce, equivalent to nearly 9,000 employees, according to Bloomberg, citing a person familiar with the matter.
Under the scheme, employees are eligible if the total of their age and years of service at the company equals 70 or more. Senior executives and staff receiving sales commissions or performance-based bonuses are excluded from the offer.
The move forms part of a broader cost-reduction strategy as the US technology giant continues to adjust its workforce and spending amid shifting market conditions, particularly the rising costs associated with artificial intelligence development.
Microsoft has carried out periodic layoffs in recent years, including cutting 10,000 jobs in January 2023 as part of its restructuring efforts.
The company has linked its ongoing workforce adjustments to rapid changes in the tech sector, highlighting growing financial pressure from expanding data center operations and the significant electricity demands required to support AI infrastructure and services.
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