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Microsoft Azure reportedly asked for 20% cost cuts despite 40% revenue growth.

Market News
15 Oct 2026
24/7 Wall Street
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Neutral
Microsoft Azure reportedly asked for 20% cost cuts despite 40% revenue growth.

Microsoft's Azure cloud division, which grew revenue by 40% to $101.9 billion in the past year, was reportedly asked to cut costs by 20%. This move, denied by Microsoft, is believed to help fund rising AI data center expenses and higher engineer salaries amid strong demand. The cost cuts would likely target contractors and vendors rather than jobs. Despite the report, Microsoft's strong cloud backlog and planned $175 billion capital expenditure for 2027 suggest ongoing investment and growth.

Microsoft shares trade at USD 537.10 on Pluang as of Oct 15, 2026, 22:41 WIB, up 0.64% in one day. The stock's market cap stands at $3.96 trillion, reflecting its massive scale. Despite reported cost-cutting rumors, investor activity leans heavily toward selling, with 86% of orders being sell orders on Pluang.

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