Tech giant Microsoft (MSFT) cut 305 more jobs yesterday, following a major 3% reduction announced on May 13. The latest round of job cuts will affect staff in Redmond, Washington, with the effective date set for August 1, 2025. The news became public after a Worker Adjustment and Retraining Notification (WARN) was filed with the Washington State Employment Security Department.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Microsoft did not comment on the latest job cuts, and no information is available on the departments affected or the reasons behind the layoffs. During the last round, 1,985 employees at Microsoft’s Redmond campus were laid off, with the effective date of July 12, 2025. The news comes as a surprise to many, since it was assumed the tech giant would not undertake any more cuts following such a drastic one in May.
Microsoft Cuts Jobs to Focus on AI
The tech sector is strategizing ways to streamline costs and divert resources toward artificial intelligence (AI) initiatives. A company spokesperson said the latest round of layoffs was “necessary to best position the company for success in a dynamic marketplace.” Last week, CEO Satya Nadella addressed the job cuts at a town-hall meeting, stating that the strategic adjustments were made to streamline operations and align resources with long-term priorities, particularly in AI, cloud computing, and enterprise software.
He added that the job cuts were not related to employee performances, but were instead part of an organizational shift. Microsoft is placing a strong emphasis on AI as a cornerstone of its future direction and growth. As of June 2024, Microsoft had about 228,000 employees globally, of which nearly 55% were based in the U.S.
The last major round of job cuts significantly hurt Microsoft’s software engineers. Tech companies are seeing increased efficiency by using AI-assisted coding and development tools, which is impacting human roles. Microsoft is not the only tech behemoth implementing job cuts. Alphabet (GOOGL) also announced laying off about 200 roles in May, and Amazon (AMZN) cut about 100 jobs within its Devices and Services division.
Is Microsoft a Good Stock to Buy Now?
On TipRanks, MSFT stock commands a Strong Buy consensus rating based on 30 Buys and five Hold ratings. Also, the average Microsoft price target of $514.07 implies 11.3% upside potential from current levels. Year-to-date, MSFT stock has gained 10%.
Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.
Report an Issue