Tech giant Microsoft (MSFT) is offering voluntary buyouts to a small group of employees for the first time in its history. According to CNBC, the program is aimed at U.S. workers at the senior director level and below whose age and years of service add up to at least 70. Eligible employees and their managers will receive more details on May 7, although those on sales incentive plans will not be able to participate. According to the company, the goal is to give long-tenured employees the option to retire with support on their own terms.
Claim 30% Off TipRanks
Forget margin or options. Here's how the pros trade AMZNInterestingly, this decision comes as Microsoft continues to spend heavily on artificial intelligence. The company is investing more in data centers to support cloud customers that are using AI, similar to what Alphabet (GOOGL) and Amazon (AMZN) are doing. In addition, Microsoft has already reduced costs through several rounds of layoffs, and it had about 228,000 employees as of June 2025.
On top of that, Microsoft is changing how it rewards employees. The company will no longer require managers to directly tie stock awards to cash bonuses, thereby giving them more flexibility to reward strong performance. It is also simplifying the review process by reducing the number of pay options managers can choose from. As a result, these changes are meant to make compensation easier to manage while supporting the company’s shift toward AI.
What Is the Price Target for Microsoft?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and two Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average MSFT price target of $573.99 per share implies 37% upside potential.
