FeesSafety
Pluang+

Microsoft offers buyouts to 27% of staff to fund rising AI investments amid high capital spending.

Market News
27 Oct 2026, 14:15 WIB
24/7 Wall Street
View Source
Bullish
Microsoft offers buyouts to 27% of staff to fund rising AI investments amid high capital spending.

Microsoft has offered voluntary buyouts to about 60,000 employees, roughly 27% of its workforce, primarily in teams like Xbox, Windows, Copilot, and Finance. This move aligns with the company's sharp increase in AI-related capital expenditures, which rose nearly 80% in fiscal 2026, even as free cash flow declined. The buyouts aim to reduce payroll costs in slower units to support expensive AI investments and data center expansions, though Microsoft did not explicitly link the offer to AI or cost-cutting in its announcement. Investors await the upcoming earnings report to see if Microsoft will clarify the financial impact of these buyouts and its capital spending outlook.

Microsoft shares trade at USD 529.57 on Pluang as of Oct 27, 2026 18:14 WIB, down 0.57% for the day. The stock's market cap stands at $3.95 trillion with a dividend yield of 0.74%. Pluang order activity shows a slight tilt toward selling at 54%, reflecting cautious investor sentiment amid the company's strategic shifts.

More News (MSFT)

Defense contractors must review CUI access before licensing Microsoft 365 Copilot in GCC High cloud.

Defense contractors must review CUI access before licensing Microsoft 365 Copilot in GCC High cloud.

eSoftware Associates advises defense contractors to carefully map controlled unclassified information (CUI) access permissions before licensing Microsoft 365 Copilot in the GCC High cloud environment. Moving to GCC High does not automatically grant c...

Market News
Neutral
49 minutes ago
Concerns rise over AI spending as 3 of 4 major AI firms in Magnificent Seven ETF outspend cash flow, relying on debt.

Concerns rise over AI spending as 3 of 4 major AI firms in Magnificent Seven ETF outspend cash flow, relying on debt.

The Roundhill Magnificent Seven ETF (MAGS) faces scrutiny as three of its four major AI companies—Alphabet, Amazon, and Meta—are spending more than their operating cash flow, relying heavily on debt and equity markets to fund AI expansion. Microsoft ...

Market News
Neutral
18 hours ago
Anthropic's IPO faces skepticism over high valuation and unclear financials ahead of planned Thanksgiving debut.

Anthropic's IPO faces skepticism over high valuation and unclear financials ahead of planned Thanksgiving debut.

Anthropic plans to go public around Thanksgiving, but its IPO faces skepticism due to a high 30x price-to-sales valuation and unclear financial adjustments. The All-In Podcast highlighted concerns over the company's $16.8 billion Q3 revenue claim and...

Market News
Neutral
18 hours ago
Microsoft offers voluntary buyouts to 60,000 employees amid costly AI investments.

Microsoft offers voluntary buyouts to 60,000 employees amid costly AI investments.

Microsoft announced a voluntary buyout program for about 60,000 eligible employees, covering over a quarter of its global workforce, to provide financial support and career planning. This move follows earlier buyouts and job cuts as the company faces...

Market News
Bearish
19 hours ago
Microsoft offers voluntary buyouts to 60,000 employees to cut costs and focus on AI growth.

Microsoft offers voluntary buyouts to 60,000 employees to cut costs and focus on AI growth.

Microsoft is offering voluntary buyouts to 60,000 employees, over a quarter of its workforce, as part of a cost-cutting and restructuring effort to focus on AI and cloud infrastructure. The buyout offers target employees in the US, Canada, UK, and In...

Company Fundamentals
Neutral
20 hours ago
banner-footerbanner-footer

Invest & Trade with
#1 Award-Winning Investment Super App