Microsoft Has Offered Buyouts to Tens of Thousands. An Expert Says the Company Is Falling Behind in the AI Race.

Microsoft offers voluntary exit to 60,000 employees (27% of workforce) to reallocate resources toward AI, with departures by Dec. 31. The move aims to manage rising capital expenditures, expected to reach $175B in 2026, while preserving profit margins. Similar adjustments are seen at Intel, Oracle, and Cisco.

Microsoft offered voluntary exit packages to about 60,000 employees, or 27% of its global workforce, in its second such program this year. Eligible employees, primarily at vice-president level and below, are in specific teams like AI and Xbox. The company's workforce had already declined by 5,000 before this offer. Microsoft frames the move as offering flexibility, but external reports suggest cost pressure may be a factor.

Microsoft is offering voluntary buyouts to 60,000 employees (27% of its workforce) in the U.S., Canada, India, and the U.K. The move aims to adapt to changing business needs as the company expands its AI business. Eligible employees have until early December to decide, with exits planned for year-end. Microsoft has not disclosed expected participation or specific payout amounts.

Microsoft (MSFT) paid $26.445B in dividends in fiscal 2026, with a 0.67% yield. The company raised its quarterly payout to $0.98 per share, totaling $29.1B annually. Dividends consumed 39.5% of free cash flow, while capital spending rose 79.62%. MSFT's dividend has grown 140% over a decade, with recent raises of 7.7%, 9.6%, and 10.7%.

Oracle (ORCL) stock rose 5% to $132.28 after announcing Google's TPUs will be available on its cloud, expanding its AI offerings. The company also plans to scale NVIDIA's Vera Rubin superclusters. Amazon (AMZN) and Microsoft (MSFT) stocks saw smaller gains. Oracle's Q1 FY2027 showed 121% cloud revenue growth but negative free cash flow. The company faces challenges in executing its multi-chip strategy.

Microsoft offers voluntary exit to 60,000 US, UK, India, and Canada employees, 27% of its global workforce. The move aims to reduce costs amid $175B AI infrastructure spending. Other Big Tech firms like Amazon, Meta, and Alphabet are also cutting jobs to fund AI investments. Microsoft reports earnings on October 28, with focus on AI growth and spending.