Microsoft on Wednesday introduced its largest spherical of layoffs this 12 months — aimed toward driving efficiencies and benefiting from new applied sciences. Jim Cramer just isn’t able to blame AI for the job cuts. The software program big stated it plans to cut back its international workforce by lower than 4%, which interprets to about 9,000 positions. It introduced lots of of job cuts in June and greater than 6,000 in Could . Roughly 1% of its workforce was eradicated in January primarily based on efficiency. “The everyday interview now we have is how a lot of those layoffs are AI?” Jim famous on ” Squawk on the Road ” because the information was breaking. However he confused that the true causes for Microsoft’s layoffs and others are that many firms have “too many individuals they usually’re making an attempt to make the quarter.” Microsoft didn’t instantly clarify its electric vehicles spherical of cuts, however a spokesperson advised CNBC tech reporter Steve Kovach the tech big continues to “implement organizational modifications essential to greatest place the corporate and groups for achievement in a dynamic market.” Kovach reported that Microsoft workers shall be spending extra time specializing in significant work by leveraging new applied sciences and capabilities. Kovach stated that sentiment might be a reference to synthetic intelligence or Copilot, the corporate’s digital AI-powered assistant. D.A. Davison analyst Gil Luria stated Microsoft is definitely making an attempt to manage prices. However he added that will increase in productiveness from using AI instruments do put the corporate in a superb place to comfortably make massive job cuts in a brief interval. “Microsoft is managing its prices very fastidiously proper now in an effort to steadiness funding with continued margin progress. The massive funding in information heart capital expenditures is placing stress on margins, and Microsoft has been in a position to offset that stress by holding down personnel progress.” Luria additionally advised CNBC that “thankfully for Microsoft, they’ve been in a position to leverage new AI instruments to extend productiveness sufficient to have the ability to obtain increased output with much less workers.” On Wednesday, D.A. Davidson raised its Microsoft worth goal to $600 per share from $500 — implying 22% upside to Tuesday’s shut of $492, which was simply shy of the inventory’s June 26 record-high shut. Luria and his colleagues cited runway for progress in Microsoft’s Azure cloud enterprise and an growth of its lead in AI. They had been particularly inspired after an excellent fiscal 2025 third quarter that quieted critics of its AI technique and issues about its fraying relationship with OpenAI. Microsoft shares have been hovering since their 52-week low of $344 on April 7 on tariff tensions. When President Donald Trump introduced a pause in “reciprocal” levies two days later, Microsoft ripped 10% increased. Practically two weeks later, shares practically revisited these lows earlier than climbing by the tip of April, Could, and June — hitting an all-time intraday excessive above $500 on Monday. On Tuesday night’s episode of “Mad Cash,” Jim included Microsoft, together with Membership names Nvidia and Meta Platforms , in his newly revealed acronym, MNM. “Not FANG. Not ‘Magnificent Seven.’ Simply M-N-Ms,” Jim stated on the present. There are the “sole survivors of a brutal quarter from what was once probably the most charming group available in the market.” (Jim Cramer’s Charitable Belief is lengthy MSFT, META, NVDA. See right here for a full listing of the shares.) As a subscriber to the CNBC Investing Membership with Jim Cramer, you’ll obtain a commerce alert earlier than Jim makes a commerce. Jim waits 45 minutes after sending a commerce alert earlier than shopping for or promoting a inventory in his charitable belief’s portfolio. If Jim has talked a few inventory on CNBC TV, he waits 72 hours after issuing the commerce alert earlier than executing the commerce. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.