Microsoft Plans 2.5% Workforce Reduction of 5,700 Jobs Next Week; MSFT Stock Rises 1% Overnight

According to Business Insider, Microsoft is planning to lay off about 5,700 employees, or 2.5% of its workforce, as early as next week to rein in costs, with the announcement potentially timed to Microsoft's new fiscal year beginning July 1. The company had roughly 228,000 full-time employees as of June 2025, and some affected staff may be offered new roles immediately.

Microsoft shares rose 1% in overnight trading ahead of Wednesday's open. Retail sentiment for MSFT on Stocktwits has climbed upward since mid-last month and was bullish as of early Wednesday. On Wall Street, 53 out of 56 analysts rate the stock 'Buy' or higher, with an average price target of $561.11, implying 50% upside from the last close.