Microsoft announced a one-time voluntary retirement program for U.S. employees, offering a financial payout and extended health care as it seeks to curb costs amid a large AI infrastructure build-out. The program targets roughly 8,750 workers, about 7% of the company's 125,000-person U.S. workforce. Microsoft has already trimmed its ranks, laying off more than 15,000 staff last year, and has pushed employees in the Seattle region to return to the office three days a week. Eligible employees are those at Level 67 or below whose combined years of service and age equal 70 or more. They will be notified on May 7 and given 30 days to decide. The company will also reduce its pay levels from nine to five and decouple stock awards from bonuses. Chief People Officer Amy Coleman said the program gives those eligible the choice to take the next step on their own terms, with generous company support. She added that many of these employees have spent years, and in some cases, decades, shaping Microsoft into what it is today. CFO Amy Hood is expected to discuss the initiative on the company's earnings call next week. The initiative is slated to take effect in fiscal Q4.