Microsoft's $1.2 Trillion Market Value Drop: Job Cuts and H-1B Visas Overshadow Massive AI Spending

Microsoft cut 4,800 jobs (2% of staff) and filed 2,879 H-1B visa applications, but the article argues the real story is a $1.2 trillion drop in market value since October 2025. The decline is attributed to investor skepticism over Microsoft's $190 billion capital expenditure in 2026, mostly on AI data centers, which has squeezed free cash flow despite strong revenue ($82.9 billion, up 18%) and profit ($31.8 billion, up 23%). Job cuts affected Xbox (1,600 roles) and commercial sales/consulting. A voluntary retirement program saw 30% of eligible U.S. employees participate. The article downplays visa controversy, focusing on the financial risk of AI investment.

First published Aug 4, 01:54 PM UTCUpdated Jul 19, 01:00 PM UTC1 reports · 1 sources

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Microsoft's $1.2 Trillion Market Value Drop: Job Cuts and H-1B Visas Overshadow Massive AI Spending

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Microsoft's $1.2 Trillion Market Value Drop: Job Cuts and H-1B Visas Overshadow Massive AI SpendingYahoo FinanceWesternJul 19, 01:00 PM UTC

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Microsoft Satya Nadella