Microsoft cloud chief Scott Guthrie reportedly asks leaders to find 20% cost cuts

Microsoft is spending money like a company building the future. It is also asking its leaders to find savings like a company bracing for winter. Scott Guthrie, the president of Microsoft’s cloud business, has asked leaders to identify cost cuts of 20%, according to reporting from The Information that other outlets later picked up. The request, dated October 13, 2026, lands in the middle of one of the most expensive infrastructure buildouts in corporate history. What Guthrie is asking for The directive asks leaders to find strategic reductions of 20%. It reflects mounting pressure on enterprise spending, where efficiency has become the defining word of the year. Back in March 2026, the company put a hiring freeze in place across its cloud unit and its North American sales groups. The stated goal was cost reduction. Then came July. Microsoft announced job cuts of approximately 4,800 roles, or about 2.1% of its workforce. Most of those positions came from the Xbox division. That unit is set to shrink its headcount by around 20%, which works out to roughly 3,200 jobs. The other side of the ledger The company planned approximately $190 billion in capital spending for 2026. Most of that ...