Microsoft Stock Soars to Record High on AI Bet; 6,000 Job Cuts Planned to Offset Costs

TradingKey - On June 18, Eastern Time, Microsoft (MSFT) saw its stock price rise by 0.5% to $480.24, reaching a historic high. As of that day, the company's cumulative growth for 2025 has reached 14%, making it one of the standout tech stocks among the "Magnificent Seven" in U.S. markets.

According to recent reports, Microsoft plans to cut thousands of jobs, primarily focusing on sales positions, with specific layoff notifications expected to be announced in early July 2025. If the layoffs reach 6,000 employees — representing about 3% of its global workforce — this would mark Microsoft's largest adjustment since layoffs affecting 10,000 employees in 2023.

The market generally believes that this layoff news is one of the factors driving up Microsoft's stock price. Investors are optimistic about Microsoft's financial strategy of cost control to offset expenses related to its AI investments; layoffs are viewed as a short-term measure to increase efficiency. By streamlining teams, especially non-technical roles, Microsoft can free up more resources and ensure ample funding for its AI strategy.

In recent quarters, Microsoft has continued to ramp up investments in AI data centers and cloud computing (Azure), resulting in a surge in capital expenditures (with Q3 2025 projected to hit $21.4 billion). Analysts note that at current investment levels, Microsoft may be forced to cut around 10,000 jobs annually to maintain profit margins.

While short-term layoffs could raise concerns about employee morale in the market, investors are more focused on balancing long-term strategies with short-term financial health through a dual approach of "cutting non-core businesses + increasing AI investments." Tech giants like Google and Amazon have also taken similar cost-cutting measures to balance their budgets.