Tech giant Microsoft (NASDAQ:MSFT) is planning to slash 10,000 jobs across its engineering and human resources divisions.
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Consensus on the Street for MSFT stock remains a Strong Buy alongside an average price target of $283.58. This points to 17.99% upside potential.
The move will see MSFT’s headcount shrink by 4.5% even as it makes a big push towards integrating ChatGPT into its offerings. This far outstrips the 1% headcount cut MSFT undertook last year.
Additionally, MSFT is also slated to announce its second quarter numbers on January 24, and analysts expect the company to post an EPS of $2.33. In the year-ago period, it had posted an EPS of $2.48 as compared to expectations of $2.32. However, it’s worth mentioning that this round of layoffs will impact EPS by -$0.12 as a result of a $1.2 billion one-time charge.
CEO Satya Nadella pointed to slowing digital spending and new major advances in AI, citing the need to hire for more strategic roles.
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