Microsoft Stock Just Hit a Fresh High; Company Plans to Trim Thousands of Jobs, Report Says

Microsoft (MSFT) is reportedly planning to trim thousands of jobs, particularly in sales, as the tech giant faces pressure to lower labor costs as it boosts spending on artificial intelligence.    

The layoffs are expected to be announced early next month, Bloomberg reported Wednesday, citing people familiar with the matter. Microsoft did not immediately respond to Investopedia’s request for comment.

The news comes about a month after reports of a 3% cut to Microsoft’s global workforce, or over 6,000 roles, in the largest layoff since Microsoft cut 10,000 jobs in 2023. The company said it employed some 228,000 employees worldwide as of the end of fiscal 2024, with around 120,000 in the U.S., according to a regulatory filing.

Many of Microsoft’s big tech peers, including Google parent Alphabet (GOOGL) and Amazon (AMZN), have made similar moves. Just last week, Google extended buyout offers to U.S. employees across the company, expanding the scope of buyout offers earlier in the year.

Many tech giants are boosting their investments in AI, squeezing profit margins, and pushing firms to lower headcounts. When Microsoft last reported earnings in April, the company stood by its plans to spend $80 billion on infrastructure in fiscal 2025; D.A. Davidson analyst Gil Luria told Investopedia last week that for every year Microsoft continues to invest at current levels, the company could be pushed to eliminate roughly 10,000 positions or allow them to go unfilled. 

Microsoft’s stock ticked less than 1% higher Wednesday to $480.24, topping Monday’s record-high close. The shares have added about 14% year-to-date, making Microsoft one of the best-performing Magnificent Seven stocks in 2025.