Microsoft Shares Sink 4% on Layoff Buyouts Amid AI Spending Fears

Microsoft Corp shares plunged about 4% after announcing voluntary early-retirement buyouts for up to 7% of its U.S. workforce, fueling bearish tech sentiment. Meta's simultaneous 10% staff cuts (around 8,000 jobs) and hiring freeze for 6,000 roles caused a 2.3% drop, tied to soaring AI capex—Meta eyes $115-135 billion in 2026. MSFT is now down 12% year-to-date and 20% over six months, with investors questioning if AI investments boost profits or strain cash flows further. Near-term outlook remains negative pending productivity proof.