Microsoft job cuts show ‘commitment to profitable growth,’ says Barclays

TipRanks

Wed, May 14, 2025, 11:45 AM 1 min read

After CNBC reported that Microsoft (MSFT) is planning to lay off about 3% of its global workforce, or about 7,000 employees, Barclays said the firm views this move as “a commitment to profitable growth,” particularly as AI infrastructure costs continue to ramp in the medium term. While Microsoft’s guided operating margin for FY25 was intact without these actions, the reduction today is likely to serve as additive to margins in FY26, says the analyst, who has an Overweight rating and $494 price target on Microsoft shares.

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