Microsoft is introducing voluntary retirement buyouts for the first time in its 51-year history, according to reports from CNBC and Bloomberg.
An internal memo indicates that eligibility for the buyouts requires a combination of age and years of service at Microsoft totaling 70 or more, with some exceptions. So, a 52-year-old employee with 18 years at Microsoft would qualify.
This strategy provides Microsoft an option to reduce its workforce more gently than mass layoffs. In recent years, Microsoft has undergone several layoff rounds, impacting thousands, including a reduction of 9,000 jobs last summer.
As of June, Microsoft had approximately 125,000 U.S. employees. The buyouts are expected to apply to 7% of its U.S. workforce, or about 8,750 employees.
TechCrunch has contacted Microsoft for a comment.