Layoffs in the tech industry are increasing as companies that are spending the most on AI infrastructure are simultaneously cutting thousands of jobs. Meta said on Thursday that it's cutting 10% of its workforce, just as Microsoft announced that it's offering employee buyouts for the first time in its 51-year history.
The market has spent much of the year rewarding caution and punishing complacency.
Microsoft (NASDAQ: MSFT) is extending gains on April 24 after “Big Short” investor Michael Burry revealed a new position in the tech titan amidst ongoing AI-driven pressure on tech stocks. This high-profile endorsement arrives only days before MSFT is scheduled to post its Q3 earnings.
Microsoft Corporation initiates its first voluntary buyout for senior U.S. employees, signaling a strategic pivot to operating discipline amid heightened scrutiny of its aggressive AI capex cycle. The program represents one of the clearest and earliest direct responses to increasing investor concerns about ROI compression, as it targets margin and FCF preservation amid intensifying AI investment outlays. The upcoming MSFT earnings will represent a key test for Azure capacity conversion, Copilot penetration, and E7 rollout prospects, with results representing a critical gauge for durable AI monetization.
Get a deeper insight into the potential performance of Microsoft (MSFT) for the quarter ended March 2026 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
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In its 51-year history, Microsoft has never offered employees a voluntary buyout. That changed Thursday, when the company announced a one-time voluntary retirement program for U.S. workers at the senior director level and below whose age and years of service add up to 70 or more.
Microsoft and Meta, the company behind Instagram and WhatsApp, are planning to make significant cuts to their respective workforces as spending on artificial intelligence (AI) finds a new high gear.
Microsoft is offering voluntary buyouts to select employees, it announced in a memo on Thursday, CNBC reported. The move is a first for the company, as the tech industry at large faces shifts in the era of artificial intelligence.
Shares of Microsoft (NASDAQ:MSFT | MSFT Price Prediction) are down roughly 4% in Thursday afternoon trading, sliding to $415 from a prior close of $432.92.
Details for the buyouts will be disclosed to eligible employees and their managers on May 7, CNBC reported. Microsoft's standard severance package previously included 12 weeks of base pay plus two additional weeks for every year of employment, though this could vary depending on tenure and level.
Slowing cloud unit growth and investor concern over its heavy reliance on OpenAI have made Microsoft one of the worst-performing Big Tech stocks this year.