Microsoft’s Stock surged to an all-time high of $480.24 on Wednesday — a striking milestone that coincides with the company’s latest plans to cut thousands of jobs next month. The surge reflects growing investor confidence in Microsoft’s aggressive artificial intelligence (AI) strategy, even as it reshapes the company’s global workforce. Microsoft shares are now up roughly 14% year-to-date.
Thousands of AI-Driven Job Cuts on the Horizon
Reports indicate Microsoft is preparing significant workforce reductions, targeting thousands of positions — primarily within its sales division. The upcoming AI-driven layoffs follow a 3% global cut just last month, which impacted over 6,000 roles. Currently, Microsoft employs around 228,000 people worldwide.
The layoffs, expected to be formally announced in early July, come as Microsoft seeks to manage costs while ramping up its AI investments. With the company pledging $80 billion toward AI infrastructure in fiscal 2025, trimming headcount has become a strategic necessity.
Big Tech Mirrors Microsoft’s Approach
Microsoft’s AI layoffs mirror an industry-wide trend. Big tech job cuts are becoming more common as companies pivot to prioritize AI. Google is offering buyouts across departments, while Amazon is enacting similar measures. The current wave of big tech job cuts underscores how major firms are choosing AI investments over traditional staffing, aiming to maintain profitability while chasing leadership in artificial intelligence.
Positive Market Reaction Underscores Investor Sentiment
Investor response to Microsoft’s AI layoffs has been overwhelmingly positive. The stock market has embraced the move, pushing Microsoft’s share price to record levels. This suggests investors view workforce reductions as necessary to maintain Microsoft’s AI edge.
According to D.A. Davidson analyst Gil Luria, if Microsoft sustains current AI investment levels, it could need to cut or leave unfilled roughly 10,000 positions annually. The market’s reaction indicates that Wall Street is prioritizing AI competitiveness over employment figures.
Microsoft’s share price today remains one of the best among the Magnificent Seven tech stocks, second only to Meta in 2025 performance. The company’s success in aligning its AI strategy with shareholder expectations continues to fuel investor confidence.
Microsoft’s stock record high highlights how AI investments are now driving corporate priorities across the tech sector. Cost-cutting to fund AI infrastructure has become a prevailing theme, and Microsoft’s stock surge suggests the strategy resonates strongly with investors.
Also Read: Tencent Expands Cloud Business in Europe with Gaming, AI, and Super App Technologies
As Microsoft continues executing its AI roadmap — balancing innovation with workforce stability — it remains a standout performer in today’s highly competitive tech landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
