Microsoft will reportedly invite 7% of their US workers to retire early, as the Xbox division talk up “strong cost discipline”


Microsoft are reportedly offering early voluntary retirement to around 7% of their US-based employees in yet another effort to ‘right-size’ their trillion dollar business.

The report in question is from CNBC, who cite an anonymous insider and share details from an alleged internal memo. Assuming they aren’t telling porkies, the one-off retirement program is a first for Microsoft. It’ll be available to US workers at senior director level and below, whose years of employment and age add up to 70 or higher. So you’d qualify for the scheme if you’re 50 and have worked at the company for 20 years.

Those who meet the criteria will apparently get more details on 7th May, though people with sales incentive plans – which tie bonuses to sales targets – can’t participate. “Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” executive VP and chief people officer Amy Coleman is said to have said, in the memo seen by CNBC.

Assuming it’s legit, the scheme would be a gentler continuation of a cost-cutting program that saw Microsoft lay off thousands last year and the year before. It’s not clear how much Microsoft aim to cut back, but the Xbox and gaming divisions are definitely under the cosh to grow their margins. A recent press release masquerading as an internal memo stresses the need to “return the business to durable growth with strong cost discipline”.

This wanton workforce-lopping takes place against the backdrop of Microsoft’s extravagant investments in generative AI, which has been touted this week by no less than Morgan Stanley as a great way for games publishers to save money by, cough, ‘enabling smaller teams’. Hey, I remember Morgan Stanley! They were one of the main characters during the 2008 financial crisis! Come to think of it, isn’t there some sort of bubble happening right now?

We’ll ask Microsoft for a comment. I think somebody from their end has just added me on LinkedIn.



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