Scott Guthrie, president of Microsoft’s cloud division, has asked leaders to identify cost cuts of 20%, according to reporting by The Information. The company plans approximately $190 billion in capital spending for 2026, largely directed at AI and data centers. In the third quarter of 2026, Microsoft reported over $130 billion in new data center lease commitments. These cost reduction demands follow a hiring freeze in March 2026 and layoffs of approximately 4,800 positions in July, primarily affecting the Xbox division. Azure leadership has also been reshuffled, with Arun Ulag taking on an expanded role, while Microsoft continues developing its Maia 200 AI chips for multi-gigawatt deployments starting in 2027.
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