Microsoft Discloses $900M Charge for Voluntary Retirement Amid AI Capex Surge

Microsoft revealed a $900 million one-time charge—$350M to cost of revenue and $550M to operating expenses—for its voluntary retirement program targeting ~7% of U.S. staff (~8,750 eligible). The disclosure follows April 26-27 reports of the first-ever buyouts for employees with age + service ≥70, amid 92,000 tech layoffs YTD, Meta's ~8,000 cuts, and shares falling nearly 4%. Despite headcount cuts and $37.5B prior AI spend, Microsoft eyes $40B quarterly capex on data centers, mixing short-term drags with long-term AI bets.