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Tech's AI Ambitions Could Mean Layoffs. Here's the Latest From Microsoft.

1. Microsoft is cutting less than 1% of its workforce based on performance. 2. The company had 228,000 employees as of June, up from 221,000 last year. 3. Microsoft plans to spend $80 billion on AI technologies in fiscal 2025. 4. AI investments aim to create new job opportunities despite tech layoffs. 5. Tech industry layoffs decreased to 152,074 in 2024 from 264,220 in 2023.

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FAQ

Why Neutral?

Layoffs are minor and align with broader industry trends. Previous layoffs did not significantly affect stock performance.

How important is it?

Job cuts reflect organizational adjustments but are unlikely to alter long-term strategies. The substantial AI investment could outweigh negative sentiment from layoffs.

Why Short Term?

Immediate market reactions may occur but long-term fundamentals remain strong. Past layoffs often had transient effects on MSFT's stock price.

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