For the first time in its 51-year history, Microsoft (MSFT) is offering voluntary buyout packages to its employees.
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The Seattle-based technology giant says it is offering voluntary buyout packages to a small percentage of its workforce as the tech sector grapples with major changes sparked by artificial intelligence (AI). The one-time retirement program is available to U.S. workers at the senior director level and below whose years of employment and age add up to 70 or higher.
Eligible employees and their managers will receive more details on the buyout May 7, according to Microsoft. The move comes as Microsoft increases its capital spending on AI data centers to supply cloud clients with more computing power.
Moves By Other Hyperscalers
With the buyouts, Microsoft appears to be following other technology hyperscalers such as Alphabet (GOOGL) and Amazon (AMZN), which are doing the same. Meanwhile, software stocks are getting hammered as coding tools from Anthropic and other AI companies threaten established businesses.
The buyout offers also come after Microsoft executed multiple rounds of layoffs over the past year. As of June 2025, the company had 228,000 employees worldwide. “Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” said Microsoft in an employee memo that has been leaked to the media.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 34 Buy and three Hold recommendations issued in the last three months. The average MSFT price target of $581.61 implies 56% upside from current levels.
