Microsoft Introduces Voluntary Retirement Program Amid Slowing Growth and Heavy AI Investments
Microsoft is launching its first-ever voluntary retirement program for U.S. employees amid heavy AI investments and slowing cloud business growth. With 365 Copilot adoption at just over 3%, the company is restructuring its AI division and simplifying employee evaluation processes.
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- 📰 Published: April 24, 2026 at 04:21
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(Central News Agency, New York, 23rd, Comprehensive Foreign Dispatch) According to a report today by US financial media CNBC citing a memo, Microsoft is planning to implement a voluntary employee retirement program for the first time in the company's 51-year history.
Reuters reports that, like other US tech giants, Microsoft has been aggressively investing in the field of artificial intelligence (AI). However, the adoption rate of its flagship AI service, 365 Copilot, remains relatively low, accounting for just over 3% of the 450 million total Microsoft 365 users.
According to CNBC, this one-time retirement plan will be open to employees in the US at the senior director level and below, provided they meet the condition of having a combined age and years of service totaling 70 years or more.
Amy Coleman, Microsoft's Executive Vice President and Chief Human Resources Officer, wrote in the memo obtained by CNBC: "We hope this program will allow eligible individuals to choose the next step in their lives on their own terms, with generous support provided by the company."
CNBC pointed out that Microsoft is adjusting the way stock is distributed in annual employee rewards. In the future, managers will no longer be required to directly link stock awards to cash bonuses. In addition, Microsoft is also simplifying the performance review process for managers, reducing the salary options from 9 down to 5.
When asked by Reuters, Microsoft declined to comment.
Due to slowing growth in its cloud business and investor concerns about Microsoft's over-reliance on OpenAI, Microsoft has become one of the worst-performing large tech stocks this year. Microsoft's stock price plummeted nearly 24% between January and March, marking its worst single-quarter decline since 2008.
In March, Microsoft consolidated its commercial and consumer versions of Copilot in a restructuring. The AI business, now headed by industry veteran Mustafa Suleyman, will focus on developing a new generation of AI models. Analysts point out that this is precisely the area where the software giant is lagging behind its competitors. (Translation: Chen Yuting)
Reuters reports that, like other US tech giants, Microsoft has been aggressively investing in the field of artificial intelligence (AI). However, the adoption rate of its flagship AI service, 365 Copilot, remains relatively low, accounting for just over 3% of the 450 million total Microsoft 365 users.
According to CNBC, this one-time retirement plan will be open to employees in the US at the senior director level and below, provided they meet the condition of having a combined age and years of service totaling 70 years or more.
Amy Coleman, Microsoft's Executive Vice President and Chief Human Resources Officer, wrote in the memo obtained by CNBC: "We hope this program will allow eligible individuals to choose the next step in their lives on their own terms, with generous support provided by the company."
CNBC pointed out that Microsoft is adjusting the way stock is distributed in annual employee rewards. In the future, managers will no longer be required to directly link stock awards to cash bonuses. In addition, Microsoft is also simplifying the performance review process for managers, reducing the salary options from 9 down to 5.
When asked by Reuters, Microsoft declined to comment.
Due to slowing growth in its cloud business and investor concerns about Microsoft's over-reliance on OpenAI, Microsoft has become one of the worst-performing large tech stocks this year. Microsoft's stock price plummeted nearly 24% between January and March, marking its worst single-quarter decline since 2008.
In March, Microsoft consolidated its commercial and consumer versions of Copilot in a restructuring. The AI business, now headed by industry veteran Mustafa Suleyman, will focus on developing a new generation of AI models. Analysts point out that this is precisely the area where the software giant is lagging behind its competitors. (Translation: Chen Yuting)