Microsoft has announced a groundbreaking voluntary buyout program for its U.S. employees, marking a first for the 51-year-old technology giant. The program will be available to approximately 7% of the company’s U.S. workforce.

According to an internal memo from Amy Coleman, Microsoft’s executive vice president and chief people officer, the one-time retirement program targets employees at the senior director level and below. To qualify, workers must have a combination of age and years of employment that totals 70 or higher.

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Coleman wrote in the memo.

The move comes as Microsoft and other tech giants ramp up capital spending on data centers to support the growing demand for generative AI computing power. Last year, Microsoft implemented multiple rounds of layoffs to streamline operations.

Additionally, Microsoft is adjusting its stock compensation structure, giving managers more flexibility to recognize high performance without tying stock awards directly to cash bonuses.

Eligible employees and their managers will receive detailed information about the program on May 7. Notably, employees with sales incentive plans are excluded from participation.