WS #11559
Microsoft cuts 4,800 jobs (2.1% of workforce), with 3,200 in Xbox, citing need to restructure for AI and poor gaming margins. Dow Jones closes above 53,000 for first time, Nasdaq up 1.1%, led by semiconductor rebound (AMD +6.6%, Qualcomm +6%, Western Digital +7%). Broadcom extends chip supply deal with Apple through 2031, locking in ~20% of AVGO revenue and hedging against AI capex cycle risk. US Treasury draft report warns AI bubble could trigger economic shockwaves, noting AI firms are deeply entrenched in broader economy.
Microsoft Layoffs and Xbox Restructuring
Microsoft cuts 4,800 jobs (2.1% of workforce), with 3,200 in Xbox, citing need to restructure for AI and poor gaming margins.
Dow Jones closes above 53,000 for first time, Nasdaq up 1.1%, led by semiconductor rebound (AMD +6.6%, Qualcomm +6%, Western Digital +7%).
Broadcom extends chip supply deal with Apple through 2031, locking in ~20% of AVGO revenue and hedging against AI capex cycle risk.
US Treasury draft report warns AI bubble could trigger economic shockwaves, noting AI firms are deeply entrenched in broader economy.