According to CNBC, Microsoft intends to reduce its US staff further through an initial voluntary severance initiative. This offer targets American workers at the senior director level or lower who meet a combined total of 70 years in age and service tenure, potentially affecting as many as 7 percent of the firm's US personnel.
Given the approximately 125,000 US-based staff as of June 2025, the initiative might extend paid departure options to around 8,750 individuals starting in May. This number is less than the roughly 15,000 positions eliminated through direct reductions in May and July 2025, yet it remains noteworthy, especially should a large number of qualifying staff opt in.
In an internal communication obtained by CNBC, Amy Coleman, Microsoft's executive vice president and chief people officer, stated: 'Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support.'
Engadget has reached out to Microsoft for verification of the voluntary severance details outlined by CNBC. Any response will prompt an update to this coverage.
The 2025 staff reductions at Microsoft focused on simplifying management structures and the gaming division, whereas the upcoming adjustments appear linked more closely to artificial intelligence efforts. This connection stems not from AI technologies displacing workers, but from Microsoft's substantial investments in AI-related systems. For Q2 2026, the firm reported $37.5 billion in capital spending, a significant portion directed at expanding data centers.