<p><strong>Microsoft Corp.</strong> (NASDAQ:MSFT) stock fell more than 1% on Monday after the company unveiled another round of layoffs, even as technology stocks rallied. The Nasdaq gained 1.83%, and the S&amp;P 500 rose 0.83%.</p>



<h2>4,800 Job Cuts</h2>



<p>Microsoft will cut about 4,800 jobs, or roughly 2% of its workforce, as it resets its Xbox division. The company described the gaming industry as “facing the most severe hardware crisis in its history.”</p>



<p>The Financial Times reported Monday that about 3,200 cuts will come from Xbox, including 1,600 immediately and another 1,600 over the next year. The remaining layoffs will affect Microsoft’s commercial division.</p>



<p>Microsoft told employees the roles were “not being replaced by AI,” but said “AI is changing how work gets done.”</p>



<p>Xbox Chief Executive <strong>Asha Sharma</strong> said the “business today is not healthy,” citing “margins that are 3-10x lower than comparable platform and publishing businesses.” She called for a “reset” amid weaker hardware demand, higher component costs, and the growth of online gaming.</p>



<p>The cuts come three years after Microsoft closed its $75 billion Activision Blizzard acquisition. Sharma said Xbox will offload four gaming studios and cut remaining units, including Activision, Blizzard and Minecraft maker Mojang.</p>



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<h2>Microsoft Technical Analysis</h2>



<p>Microsoft is trading near its 20-day simple moving average of $384.78. However, the stock remains 5.5% below its 50-day SMA of $406.63 and 13.6% below its 200-day SMA of $444.81. That setup suggests the longer-term trend remains under pressure.</p>



<p>The relative strength index stands at 46.47, indicating neutral momentum. The reading does not point to either an overbought or oversold condition.</p>



<p>A death cross formed in January, with the 50-day SMA moving below the 200-day SMA. That pattern often signals persistent long-term weakness.</p>



<p>Key resistance is near $433. Key support sits around $349, close to the stock’s 52-week low of $349.20.</p>



<h2>Earnings And Analyst Outlook</h2>



<p>Microsoft is expected to report quarterly results on July 29.</p>



<p>Wall Street expects earnings of $4.23 per share on revenue of $87.61 billion, compared with earnings of $3.65 per share and revenue of $76.44 billion a year earlier.</p>



<p>Analysts maintain a consensus Buy rating with an average price forecast of $559.40. Recent research includes <strong>Stifel </strong>lowering its price forecast to $400 while maintaining a Hold rating,<strong> TD Cowen</strong> reiterating Buy with a $540 price forecast, and <strong>Cantor Fitzgerald </strong>maintaining an Overweight rating with a $502 price forecast.</p>



<h2>Microsoft Benzinga Edge Rankings</h2>



<p>Microsoft scores highly on Quality but weakly on Momentum, reflecting strong underlying fundamentals despite a softer technical picture. Its Value and Growth scores remain in the neutral range.</p>



<h2>ETF Exposure</h2>



<p>Microsoft remains one of the largest holdings in<strong> the Vanguard S&amp;P 500 Growth ETF</strong> (NYSE:VOOG),<strong> iShares Russell Top 200 Growth ETF </strong>(NYSE:IWY) and<strong> SPDR S&amp;P 500 ESG ETF </strong>(NYSE:EFIV). Large fund flows into these ETFs can influence demand for the stock.</p>



<h2>Microsoft Price Action</h2>



<p><strong>MSFT Stock Price Activity:</strong> Microsoft shares were down 1.27% at $385.54 at the time of publication on Monday, according to Benzinga Pro data. The stock is now nearly 23% over the past 12 months.</p>



<p><em>Photo via Shutterstock</em></p>



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<p>Microsoft announced layoffs of approximately 4,800 employees, primarily impacting the Xbox division, as it attempts to reset its gaming business amid a severe hardware crisis and declining margins. Consequently, MSFT stock fell over 1% on Monday, diverging from broader market gains. The cuts include offloading four studios and reducing units like Activision and Mojang. Analysts maintain a consensus Buy rating with an average price target of $559.40, despite technical indicators suggesting long-term weakness.</p>

- Microsoft Corp. stock declined over 1% following the announcement of 4,800 job cuts, representing about 2% of its workforce.  
- The layoffs primarily target the Xbox division, amidst a significant hardware crisis within the gaming industry, which has prompted a call for a business reset.  
- Despite current pressure in stock performance, analysts project earnings growth for the upcoming quarterly results, with the stock maintaining a consensus Buy rating.

Xbox in Chaos: Why Microsoft Just Axed 4,800 Jobs