Sen. Bernie Sanders (I-Vt.) criticized corporate tax incentives after Microsoft Corp. (NASDAQ:MSFT) reported billions in profits last year while significantly reducing its workforce.
Sanders took to X on Tuesday and posted that “Corporate greed is Microsoft making $134 billion in profits last year, receiving $19 billion in tax breaks under Trump, paying a lower federal income tax rate than a nurse and getting rid of 60,000 workers.”
He called the argument that tax breaks lead corporations to create jobs “a total scam,” directly challenging a frequently cited justification for business tax incentives.
Microsoft did not immediately respond to Benzinga’s request for comment.
Microsoft Cuts Jobs, Faces Visa Restrictions
Sanders’ comments come on the heels of report that Microsoft asked roughly 60,000 employees to consider buyouts with compensation packages, citing cost reduction and workforce changes.
Microsoft is reportedly offering voluntary buyouts to eligible employees at the vice president level or below in selected teams across the U.S., Canada, India and the U.K. Some data center, sales and marketing employees are excluded. The program offers terms similar to standard severance and is intended to help employees already considering leaving, while allowing the company to adjust its workforce to changing business needs.
The tech giant has cut tens of thousands of jobs in previous layoffs. Its July retirement offer was accepted by more than 30% of the roughly 8,750 eligible employees.
The latest move also comes weeks after the Trump administration suspended Microsoft and Adobe Inc. (NASDAQ: ADBE) from the Department of Labor’s Permanent Labor Certification, or PERM, program, which companies use to sponsor eligible foreign workers for permanent U.S. residency. Notably, the move does not affect current H-1B visa holders directly but restricts a common pathway for skilled foreign workers to obtain permanent residency.
Microsoft Earnings Put AI Growth in Focus
Microsoft is set to report its fiscal first-quarter earnings on Wednesday after hours. Overall, the company has delivered 14 consecutive quarters of double beats through the fourth quarter.
Yorkville Ives analyst Dan Ives expects 800–1,000 new U.S. data centers over the next few years, positioning Microsoft, Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) to benefit from the AI-driven “Fourth Industrial Revolution.” He views Microsoft as the clearest investment opportunity, with Azure growth and the pace at which new capacity is absorbed serving as key indicators of whether strong demand can justify rising capital spending.
Price Action: Year-to-date, Microsoft’s stock has climbed 9.87%, as per Benzinga Pro. On Tuesday, it closed 0.24% lower at $531.33.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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