Microsoft (MSFT) lately disclosed that it’s parting methods with as much as 2.5% of its workforce. Generally corporations conduct layoffs as a result of their outlooks have deteriorated, nevertheless it’s unlikely that Microsoft is reducing staff as a result of it’s struggling.
To begin with, within the post-pandemic AI period, many Huge Tech corporations throughout the board have been shedding comparatively small numbers of their employees right here and there. Secondly, Microsoft’s most lately reported quarterly monetary outcomes counsel that the agency is benefiting tremendously from the AI increase.
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With the latter development more likely to proceed for the foreseeable future and MSFT inventory altering palms at a comparatively low valuation, worth traders in search of a Huge Tech play ought to take into account shopping for shares. Let’s take a more in-depth look.
Huge Tech Has Been Laying Off Staff. Microsoft Is Becoming a member of the Crowd.
Up to now yr, Amazon (AMZN), Intel (INTC), Oracle (ORCL), Cisco Techniques (CSCO), and Dell Applied sciences (DELL) have collectively spent billions on severance prices, in response to a Enterprise Insider report. That knowledge, after all, signifies that these tech corporations have every been shedding important numbers of employees.
It seems that many of those corporations are shedding lots of the staff that they added through the pandemic, with AI now additionally performing significant quantities of labor at these corporations. So, Microsoft will not be alone in its newest layoff determination, and certain simply rebalancing its workforce.
Microsoft Continues to Profit From the AI Growth
In a earlier article about MSFT inventory in March 2026, I famous that Microsoft is receiving an enormous increase from the proliferation of synthetic intelligence. I additionally theorized that modifications the corporate had made to its AI assistant, Copilot, may meaningfully increase the adoption of the software.
In Microsoft’s fiscal third quarter reported on April 29, 2026, AI annual recurring income jumped 123% versus the identical interval a yr earlier to greater than $37 billion. Moreover, CEO Satya Nadella famous that the income generated by Copilot consumption charges virtually doubled from the earlier quarter. Nadella defined that the agency was seeing “prospects more and more prolong Copilot with customized brokers tailor-made to their workflows.”
