Microsoft Hits Historic $3 Trillion Valuation On Same Day Of Xbox Layoffs
Microsoft announced 1,900 jobs had been axed within the Xbox division earlier before, with Gaming CEO Phil Spencer explaining how the goal going forward is for leadership to “align on a strategy and an execution plan with a sustainable cost structure” to support the whole of its growing business.
While it’s unfortunate news, this has all been timed in with some historic news for the tech and gaming giant. On the same day of these announcements, the company led by Chairman, CEO and longtime employee Satya Nadella, has actually reached a $3 trillion market cap for the first time in its history.
This places it as the second company after iPhone maker Apple to reach this valuation. Apple hit this same record two years ago. The latest surge on Microsoft’s end has been driven by AI investment and its new Windows tool Copilot, which now has a pricing model attached to the company’s 365 service.
Since Satya Nadella took over, acquisitions like the Minecraft IP, LinkedIn, and GitHub, as well as recent AI acquisitions and investments have helped the company’s growth skyrocket.
As for its Xbox branch, according to Phil Spencer, the plan going forward is to continue to invest in areas that will “grow the business” and support the strategy of bringing more games to more players around the world.
