🔍 Read the full analysis: A Guide To Big Tech’s New Ways Of Paying For AI on ThorstenMeyerAI.com
Get hardware and tech essentials delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
TL;DR
Microsoft has offered about 60,000 eligible employees a voluntary exit package, while Meta disclosed plans to raise up to $95 billion through stock offerings. The developments show how the cost of expanding AI infrastructure is reaching both workers and shareholders, though neither move alone establishes that AI is the sole cause.
Microsoft offered voluntary severance to about 60,000 employees across four countries on Monday, while Meta disclosed a plan to raise as much as $95 billion in new equity. The two moves put workers and shareholders among the groups affected as the companies finance expanding infrastructure spending, including investment in artificial intelligence.
Microsoft’s offer applies to eligible employees in participating teams in the United States, Canada, the United Kingdom and India, at level 70 and below. That is about 27% of its 223,000 employees as of June 30, 2026, not an estimate of how many will leave. Microsoft set a decision deadline in the first week of December, with departures scheduled for December 31. The package includes severance based on pay, tenure and level, continued stock vesting, healthcare for a fixed period and career-transition support.
The offer covers some teams working on AI experiences and Copilot, as well as finance, human resources, Xbox, and Windows and Devices, according to reporting by Reuters and GeekWire. Sales is excluded; accounts of other excluded groups differ among reports. Microsoft told GeekWire the program is not a sign that it needs fewer people and is not a substitute for layoffs, which remain possible. The company has not stated a target number of departures and expects take-up below the roughly 30% seen in its spring retirement offer, according to GeekWire and CNBC.
Meta’s filing describes a financing plan in stages. About $35 billion is being raised now: $22.5 billion through forward sales of Class A shares and $12.5 billion through mandatory convertible preferred securities. Meta also plans a separate $60 billion at-the-market program involving new non-voting Class C shares, expected to begin in early 2027. The filing describes support for continued investment in AI infrastructure and personal superintelligence. The planned future program has not yet been set up.
The companies’ spending figures help explain the financing pressure. Meta reported negative free cash flow of $2.12 billion in the third quarter, compared with positive $10.63 billion a year earlier, while planning $135 billion to $145 billion in capital spending this year. Microsoft spent $115.9 billion on property and equipment in fiscal 2026, up from $64.6 billion in the previous fiscal year. Reuters reported Microsoft forecast $175 billion in capital expenditure for calendar 2026.
Infographic 01 · Two ways to pay
Buyouts for 60,000 people. Up to $95 billion in new stock.
On the same Monday, Microsoft opened a voluntary exit window and Meta launched its largest equity raise. What each offer actually contains.
Microsoft pays with people
Voluntary Exit Offer, memo of 26 Oct 2026
- Where: US, Canada, UK, India; level 70 and below (up to general managers, some VP titles) company figure
- Teams in: AI experiences, Copilot, finance, HR, Xbox, Windows + Devices unnamed source
- Teams out: sales; outlets also name marketing, data centers, security, some engineering
- Package: standard severance: base pay by tenure and level, stock vesting continues, healthcare for a fixed period, career help company figure
- Take-up: no target; expected well below the ~30% of the spring retirement offer
Meta pays with shareholders’ money
Financing plan, SEC filing of 26 Oct 2026
Total: up to about $95 billion. Nvidia, AMD and Broadcom indicated interest in up to $5.0 billion in total non-binding. The $60 billion program plan, not set up.
Different instruments, one bill: the AI build-out.Meta Q3 free cash flow −$2.12 billion; Microsoft property and equipment spending $115.9 billion in fiscal 2026
Sources: GeekWire, CNBC, Reuters (26 Oct 2026); Meta free writing prospectus (SEC, 26 Oct 2026); Meta Q3 2026 results (21 Oct 2026); Microsoft 10-K FY2026.
Powered by Thorsten Meyer AI
The announcements show that the cost of the AI build-out is being financed through more than operating cash and borrowing. Microsoft’s offer gives eligible workers a choice to leave with a package; Meta’s proposed equity raises could dilute existing shareholders as new shares are issued. These are different mechanisms, but both connect corporate investment plans to people outside the companies’ data-center budgets.
The figures also show why the financing question matters. Meta’s reported third-quarter free cash flow turned negative while its planned capital spending remains high. Microsoft’s annual property-and-equipment spending rose sharply. Those numbers do not establish that AI spending is the only cause of either company’s decisions, but the companies’ filings and announcements tie infrastructure investment to the need for substantial funding.
For employees, the Microsoft offer is not a notice that 60,000 jobs will be cut: it is an invitation to eligible staff, and participation is voluntary. But Microsoft says layoffs remain possible, so the program does not settle what future staffing changes may occur. For investors, Meta’s plan raises questions about the cost, timing and effects of financing its ambitions with equity.
Products Worth Considering
Apple MacBook Air 15-inch Laptop with M5 Chip, 16GB Memory, 512GB SSD, and Liquid Retina Display
Apple MacBook Pro 14-inch with M5 Max Chip (18-Core CPU, 20-Core GPU), 48GB RAM, 2TB SSD, Space Black
Apple MacBook Pro 16-inch Laptop with M5 Pro, 18-Core CPU, 20-Core GPU, 48GB Memory, 2TB SSD, Space Black
As an affiliate, we earn on qualifying purchases.
Recent Cuts and Spending Growth
Microsoft’s offer follows other workforce changes. In spring 2026, the company introduced a voluntary retirement program for roughly 8,750 to 9,000 eligible US employees, according to GeekWire and Reuters. About 30% accepted, and Microsoft recorded a $900 million charge for the program, GeekWire reported. Chief People Officer Amy Coleman said the uptake reduced the size of subsequent layoffs. Microsoft cut 4,800 jobs in July, about 2% of its workforce, and cut more than 15,000 jobs in 2025.
The company’s reported headcount grew from about 144,000 in June 2019 to 221,000 in June 2022, then reached 228,000 in 2024 and 2025 before falling to 223,000 in June 2026. Acquisitions, including Nuance and Activision Blizzard, contributed to the earlier growth. In the latest year, Microsoft reported declines in product research and development, sales and marketing, and general and administration headcount, while operations staff remained at 89,000.
That history complicates any single-cause explanation of the new offer. The source material says published passages from Microsoft’s memo do not mention AI, and the company says the offer is not evidence it needs fewer people. At the same time, AI-related teams are among those eligible, and infrastructure spending has increased. The reported facts point to overlapping workforce and investment changes, rather than a clear, company-stated claim that AI alone prompted the exit offer.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.”
— Amy Coleman, Microsoft chief people officer, as quoted by GeekWire and Reuters
Take-Up, Costs and Dilution
Microsoft has not disclosed how many employees it expects to accept the offer, its total expected cost, or a full list of participating and excluded teams. Reports differ on some excluded groups. The 60,000 figure describes the eligible population, not a planned reduction in headcount. It is also unclear how the offer will affect any later layoffs; Microsoft has said those remain possible.
Meta’s disclosed $60 billion at-the-market share program is planned for early 2027 and has not yet been established. The eventual amount raised, timing of sales and resulting dilution are not settled by the announcement. The reported spending figures also do not establish what share of each company’s workforce or capital budget is attributable specifically to AI rather than other business needs.
December Decisions and Earnings
Eligible Microsoft employees are expected to decide by the first week of December, with departures scheduled for December 31. Microsoft’s quarterly results are due Wednesday, October 28, according to the source report; the release may provide more information about spending and the expected cost of the offer, though no specific disclosure has been promised.
Investors and employees will also be watching for additional details on Meta’s equity offerings, especially the proposed Class C share program planned for 2027. Until the companies disclose take-up, costs and final financing outcomes, the scale of the workforce effect and the full financial impact remain open.
Key Questions
Will all 60,000 eligible Microsoft employees leave?
No. About 60,000 is the number eligible, not the expected number of departures. Microsoft has not set a public take-up target and expects participation below the roughly 30% rate for its spring retirement program.
What does Microsoft’s exit package include?
Reported terms include severance based on pay, tenure and level, continued stock vesting, healthcare for a fixed period and career-transition services. Employees are expected to decide by early December and leave on December 31 if they accept.
Is Microsoft saying AI caused the employee offer?
No. The published memo passages cited in the source material do not mention AI, and Microsoft said the offer does not mean it needs fewer people. Some AI experiences and Copilot teams are eligible, but the company has not said AI alone prompted the program.
How is Meta’s $95 billion plan structured?
The plan includes about $35 billion in current offerings—forward sales of Class A stock and mandatory convertible preferred securities—and a proposed $60 billion at-the-market program in non-voting Class C shares expected to start in early 2027. That later program has not yet been set up.
What happens next for employees and investors?
Microsoft employees have until early December to decide, and the company’s quarterly results are scheduled for October 28. Meta’s proposed future share program is expected in early 2027, but its final timing and amount raised remain unclear.
Source: ThorstenMeyerAI.com
