Microsoft has achieved a $4 trillion valuation, with strong financial results showing revenues of $76.4 billion and net income of $27.2 billion for the quarter ending June 30, 2025. The growth is mainly attributed to its cloud and AI sectors, with Azure reporting $75 billion in annual revenue. However, the company has also laid off approximately 25,000 employees this year, raising concerns about the impact of AI investments on the workforce. CEO Satya Nadella acknowledged the contradiction of thriving earnings alongside significant layoffs, referring to this phenomenon as "the enigma of success."
Microsoft has laid off a substantial number of employees this year - about 25,000, to be exact, including roughly 9,100 in July alone (approximately 4% of its workforce).
Despite those impressive financials, Microsoft is betting that its aggressive $80 billion AI investments will pay off, highlighting an ongoing trend in the tech industry.
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