While most stocks this afternoon got a bump from planned tariff relief for many countries willing to negotiate with the Trump Administration, tech giant Microsoft (MSFT) proved no different. A combination of factors, including some planned job cuts, gave Microsoft a real edge, up over 9.5% in the closing minutes of Wednesday’s trading.
In what seems to be a bit of a theme going around the tech sector lately, Microsoft is poised to cut jobs, again. But this time, the cuts will have a very particular focus that has some eyebrows raised: specifically, the cuts are said to target middle management and the non-coders in the company. If things go as planned, reports note, the cuts may start up in May, which is just about three weeks away.
But some coders may be on the block as well, reports noted, as there will also be a performance component considered in the layoffs. Employees who rank lower on Microsoft’s “ManageRewards slider” system may also be on deck for cuts. The exact numbers of cuts are not yet known, though the reports suggest that “…a significant portion of staff...” could be impacted by the move. Meanwhile, the surviving managers will be expected to manage larger numbers of employees, in a move to raise “…the ratio of engineers to non-technical staff within project teams,” reports note.
Xbox Games Showcase 2025 Confirmed
Meanwhile, for Xbox buffs out there, the big news is that this year’s Xbox Games Showcase has been confirmed, and will hit June 8 this year. Mostly now a replacement for the defunct E3 event, we will be treated to a range of product announcements, as Microsoft lays out the rest of the year in gaming. Of immediate concern, and given a special event at the show, will be the direct event for The Outer Worlds 2.
Naturally, speculation is already firing up as to what will make an appearance at the show. Several titles, including the new Fable or the eye-catching Clockwork Revolution are potentially on hand. And there remains the possibility that Microsoft may show off next-generation console hardware, which may look less like a console and more like a highly-specific gaming PC. We are, after all, approaching year six of this console generation, which suggests new consoles may be in play sooner rather than later.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 7.46% loss in its share price over the past year, the average MSFT price target of $509.18 per share implies 30.23% upside potential.
