Microsoft’s stock hit a record high of $480.24 on Wednesday, and this comes right as the company is planning to cut thousands of jobs next month. Microsoft’s stock record high is happening while reports suggest the tech giant is trimming its workforce to help fund massive AI investments, with shares up about 14% so far this year.
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AI Layoffs Drive Microsoft Stock Surge and Reshape Tech Jobs
Thousands of Jobs Set to Be Cut
Microsoft is planning some major workforce cuts, and Microsoft’s AI layoffs will target thousands of positions, particularly in the sales division. These Microsoft AI layoffs represent the latest reduction after last month’s 3% global workforce cut that affected over 6,000 roles. The company employs around 228,000 people worldwide at the time of writing.
The cuts are expected to be announced early next month, and this is happening as Microsoft faces pressure to reduce costs while also boosting AI spending.
Big Tech Follows Similar Patterns
Microsoft isn’t alone in this approach either. Big tech job cuts have become pretty standard across the industry right now, with Google extending buyout offers company-wide and Amazon implementing similar measures. These big tech job cuts reflect the industry-wide pressure to balance AI investments with profitability, and the big tech job cuts trend shows that companies are prioritizing artificial intelligence over traditional staffing.
Stock Market Embraces the Strategy
The stock market reaction to Microsoft’s job cut news has been surprisingly positive, with shares climbing to this new record high. This stock market reaction suggests that investors view workforce reductions as necessary for AI competitiveness. The positive stock market reaction demonstrates how markets currently value AI positioning over employment metrics.
D.A. Davidson analyst Gil Luria claims 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 has committed to spending $80 billion on AI infrastructure in fiscal 2025, which is driving these strategic decisions.
Share Price Performance Stays Strong
Microsoft’s share price today reflects strong investor confidence despite the job cut announcements. Microsoft’s share price today represents one of the best-performing Magnificent Seven stocks in 2025, trailing only Meta.
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AI Investment Strategy Drives Changes
Microsoft’s stock record high demonstrates how AI investments are reshaping corporate priorities right now. Companies are cutting costs to fund AI infrastructure, and Microsoft’s success shows this strategy resonates with investors. This approach has made Microsoft one of 2025’s top-performing tech stocks.
The balance between AI advancement and workforce stability remains crucial as Microsoft continues executing its strategy while also maintaining record stock performance.