Microsoft offers buyouts to about 60,000 employees, then beats estimates as Azure grows 48%
AP explains who is eligible for the buyout; Microsoft's release and CNBC cover the quarter, the capex shortfall and the supply delays.
On October 26, Microsoft's chief people officer, Amy Coleman, announced a voluntary exit offer for about 60,000 employees, roughly 27% of the global workforce, in the US, UK, Canada and India, the AP reports. Microsoft had about 223,000 full-time employees at the end of June and cut 4,800 jobs in July.
Two days later Microsoft reported fiscal first-quarter revenue up 19% and diluted earnings of $4.92 a share, up 32%. Microsoft Cloud revenue was $63.9 billion, up 30%, and commercial remaining performance obligation rose 73% to $677 billion, according to the company. CNBC reports Azure grew 48% and finance chief Amy Hood guided to 49% to 50% growth next quarter.
Capital expenditures and finance leases were $45.2 billion, below the $50.67 billion analysts expected; Hood said some third-party capacity deliveries were delayed. Free cash flow fell 27% to $18.63 billion but stayed positive. The stock rose 2% to 4% after hours but ended the next day roughly flat.
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Voluntary redundancy
After exploring Microsoft offers a quarter of its global workforce voluntary buyouts as AI spending accelerates, for how buyouts differ from layoffs, read Voluntary redundancy.
Wikipedia describes voluntary redundancy as a financial incentive an organization offers to encourage employees to leave voluntarily, usually to avoid compulsory layoffs during downsizing.
Wikipedia · Wade · 5 min
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