Microsoft to Cut 4,800 Jobs, Shifts AI Strategy Ahead of July 29 Earnings
MSFT is trading near its 52-week low of $349.2 (10% above the low).
Summary
Microsoft is cutting ~4,800 jobs (2.1% of workforce), with Xbox bearing the brunt at ~3,200 roles (~20% of the unit), as the company targets growth in 2027. The restructuring comes ahead of quarterly earnings on July 29, where traders will scrutinize AI capex pace and cloud revenue. Separately, Microsoft is routing some Copilot prompts to its in-house MAI model, signaling a shift away from third-party AI. Analyst sentiment remains overwhelmingly bullish: 53 of 56 rate the stock a Buy, with an average price target of $559.59, implying ~45% upside. Michael Burry's June portfolio disclosure added MSFT as a value holding. The job cuts and AI pivot add complexity to the earnings setup.
At the time of this announcement, MSFT was trading at $385.10 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.9T. The 52-week trading range was $349.20 to $555.45. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Wiseek News.