Microsoft Corporation (MSFT) to Cut 4,800 Jobs

We recently published Ray Dalio Stock Portfolio: 10 Best Stocks to Buy. Microsoft Corporation (NASDAQ:MSFT) is one of Ray Dalio’s best stocks to buy.

On July 6, Reuters reported that Microsoft Corporation (NASDAQ:MSFT)  said it will cut 4,800 jobs, or about 2.1% of its global workforce. It is restructuring its Xbox business with 3,200 gaming-related layoffs and the divestment of up to five studios.

Reuters said the move follows years of heavy investment in gaming, including the Activision Blizzard acquisition. The tech giant moves toward distributing games across more platforms instead of relying on console exclusives.

Chief People Officer Amy Coleman told employees, “The roles eliminated today are not being replaced by AI,” and that “AI is changing how work gets done.”

Equisights Research CEO Parth Talsania said the cuts reflected portfolio reallocation and operating discipline rather than a new catalyst for the  stock. On the other hand, D.A. Davidson Managing Director Gil Luria said Microsoft Corporation (NASDAQ:MSFT)  has reduced headcount to fund AI investments while maintaining margins.

Reuters said the company projected $190 billion in 2026 spending, mainly due to AI infrastructure.

Microsoft Corporation (NASDAQ:MSFT) creates and supports software, services, devices, and solutions. Its business is divided into productivity and business processes, intelligent cloud, and more personal computing segments.

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While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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