MSFT Plunges Toward Worst Day In Over Two Months On First-Ever Voluntary Employee Buyout

• Additional details will be provided to eligible workers and their managers on May 7, the report noted.
• Microsoft is pouring record amounts of capital into artificial intelligence infrastructure, with capital expenditures reaching $37.5 billion in its fiscal second quarter ended December 2025. 
• The company carried out multiple rounds of layoffs in 2025 that eliminated more than 15,000 positions globally.

Shares of Microsoft (MSFT) fell 4% on Wednesday following a media report that the firm will offer a voluntary buyout program to about 7% of its U.S. workforce for the first time in the company’s 51-year history.

MSFT stock is on track for its worst day since early February.

Employee Buyout Program

CNBC reported, citing an internal memo, that the one-time retirement program is open to U.S. employees at the senior director level and below whose age plus years of service total 70 or more.

“Our hope is that this program gives those eligible the choice to take that next step on their own terms, with generous company support,” Microsoft executive vice president and chief people officer Amy Coleman wrote in the memo viewed by CNBC.

Additional details will be provided to eligible workers and their managers on May 7, the report noted, while adding that employees on sales incentive plans will not be eligible to participate in the buyout. 

Coleman also reportedly clarified that the company will no longer make managers tie stock directly to cash bonuses for its employees, aiming to provide more flexibility in how managers reward people.

Increased Capex For AI Infrastructure

Microsoft is pouring record amounts of capital into artificial intelligence infrastructure, with capital expenditures reaching $37.5 billion in its fiscal second quarter ended December 2025—a roughly 66% jump from the same period a year earlier.

The heavy spending, primarily on data centers, GPUs, servers, and networking equipment, is to keep pace with explosive customer demand for Azure artificial intelligence and cloud computing services. This has put the company on pace for capex spending worth $110 billion to $120 billion for fiscal 2026.

At the same time, Microsoft has pursued cost discipline across its workforce. The company carried out multiple rounds of layoffs in 2025, eliminating more than 15,000 positions globally.

How Did Retail Traders React?

On Stocktwits, retail sentiment around MSFT fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

A Stocktwits user opined that MSFT stock is taking “too long to recover,” while adding that the company is a breed of its own, separate from names like Salesforce and ServiceNow.

Another user said that the employee buyout is proof that the company is realising massive efficiencies with artificial intelligence and voiced support for a share buyback.

MSFT stock has dropped nearly 12% year-to-date. 

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