Microsoft’s 60,000-Staff Exit Has No Floor Price as $175 Billion in Capex Looms

Microsoft is offering voluntary buyouts to about 60,000 employees just before the company reports fiscal first-quarter 2027 results after Wednesday’s close. The time-limited program covers employees at level 70 and below in the US, Canada, India, and the UK, with the eligible pool equaling more than a quarter of the 223,000 full-time staff Microsoft reported on June 30. Chief People Officer Amy Coleman announced the plan in a memo to staff, and investors will use Wednesday’s report to judge whether the company’s AI spending is starting to pay off.

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs,” the memo read. The memo lists no payment amounts. Employees reportedly have until early December to decide, with exits planned for the end of the year.

A source told Reuters that teams in AI experiences, Copilot, Xbox, and Windows + Devices qualify, while marketing, commercial business, and security teams sit outside the offer. The buyout marks Microsoft’s third workforce move of 2026: the company offered buyouts to about 9,000 US employees earlier this year, then cut 4,800 jobs in July.

BeInCrypto’s preview puts estimates near $4.71 in earnings per share on about $90.63 billion in revenue. Microsoft shares closed 1.54% higher at $532.60 on Monday, according to Google Finance, and were up 10.3% year-to-date. Microsoft topped forecasts in January, yet its shares fell 10% to $433.50 the next day, erasing $357 billion in market value—the company’s largest one-day loss.

Meta faced similar pressure in July, when AI infrastructure spending, legal charges, and severance costs cut its operating margin to 31% from 43%. Microsoft has forecast $175 billion in capital expenditure for calendar 2026, while Wednesday’s report will test Azure against guidance of 44% to 45% growth. The earnings call may also show whether a buyout charge lands in the December quarter.