Microsoft stock
Microsoft announced on July 6, 2026, a workforce reduction of approximately 4,800 employees, representing roughly 2.1% of its global staff. This strategic realignment is designed to optimize the company's cost structure as it commits to a $190 billion capital expenditure plan for AI infrastructure in fiscal year 2026. The layoffs are concentrated within the gaming and hardware divisions, which the company stated are undergoing a "strategic reset" to prioritize AI integration and cloud services. This move is intended to preserve operating margins and reallocate resources toward high--growth generative AI initiatives following a period of significant stock volatility.