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Business
Microsoft to raise $25 bn via bond sale as it offers voluntary exits to 60,000 staff
✍️ Times of India
🗓 03 Nov 2026, 09:50 AM
👁 2
Microsoft priced a $25 bn bond, its first US investment‑grade issue since 2017, while offering voluntary exit packages to roughly 60,000 employees. The proceeds will back AI‑focused data‑centre spending as capex nears $175 bn.
Microsoft has priced a $25 billion bond sale, marking its first US investment‑grade offering since 2017. The issuance was split into ten tranches and attracted orders totaling $115 billion, reflecting strong investor appetite for the tech giant’s debt.
In parallel, the company disclosed voluntary exit packages for about 60,000 employees, signalling a workforce adjustment as it reshapes its talent pool for future growth.
Chief Financial Officer Amy Hood told analysts that demand for Azure cloud services is outpacing supply, prompting the firm to channel the bond proceeds into expanding AI‑focused data centres. Microsoft’s capital expenditure on AI infrastructure is expected to approach $175 billion.
The combined moves underscore Microsoft’s aggressive strategy to fund its artificial‑intelligence push while managing its cost base through targeted staff reductions.
Analysts view the bond sale as a vote of confidence in Microsoft’s long‑term growth prospects, especially as the company seeks to cement its leadership in the rapidly evolving AI market.
In parallel, the company disclosed voluntary exit packages for about 60,000 employees, signalling a workforce adjustment as it reshapes its talent pool for future growth.
Chief Financial Officer Amy Hood told analysts that demand for Azure cloud services is outpacing supply, prompting the firm to channel the bond proceeds into expanding AI‑focused data centres. Microsoft’s capital expenditure on AI infrastructure is expected to approach $175 billion.
The combined moves underscore Microsoft’s aggressive strategy to fund its artificial‑intelligence push while managing its cost base through targeted staff reductions.
Analysts view the bond sale as a vote of confidence in Microsoft’s long‑term growth prospects, especially as the company seeks to cement its leadership in the rapidly evolving AI market.