WS #11560
Microsoft cuts 4,800 jobs (2.1% of workforce), with deep cuts at Xbox, citing need to pivot to AI and address 'unhealthy' gaming margins. Dow Jones closes at record above 53,000, Nasdaq up 1.1%, driven by semiconductor rebound (AMD +6.6%, Qualcomm +6%, Western Digital +7.1%). Broadcom extends Apple chip supply deal to 2031, locking in ~20% of AVGO revenue and providing a hedge against AI capex cycle risk. A US Treasury draft report warns that an AI market downturn could trigger economic shockwaves, citing concentration, private-market financing, and data center infrastructure risks.
Microsoft layoffs and Xbox restructuring
Microsoft cuts 4,800 jobs (2.1% of workforce), with deep cuts at Xbox, citing need to pivot to AI and address 'unhealthy' gaming margins.
Dow Jones closes at record above 53,000, Nasdaq up 1.1%, driven by semiconductor rebound (AMD +6.6%, Qualcomm +6%, Western Digital +7.1%).
Broadcom extends Apple chip supply deal to 2031, locking in ~20% of AVGO revenue and providing a hedge against AI capex cycle risk.
A US Treasury draft report warns that an AI market downturn could trigger economic shockwaves, citing concentration, private-market financing, and data center infrastructure risks.