business

5/13/25

Microsoft is laying off 3% of its workforce

Microsoft announced that it’s laying off 3% of its global workforce of 228,000 workers.

The company had recently reported very strong earnings for Q2 2025, blowing past analyst expectations, powered by strong demand for AI services from its Azure cloud computing business.

Microsoft’s recent pullback from several large AI data center projects has spooked the industry, stoking fears of a data center oversupply, though Microsoft CEO Satya Nadella said on the earnings call: “I feel very, very good” about the pace of the company’s data center plans.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” said a Microsoft spokesperson in an emailed statement.

Shares were down slightly on the news.

This story is developing.

Microsoft is cutting 3% of all workers

Microsoft is cutting 3% of all workers

Microsoft’s recent pullback from several large AI data center projects has spooked the industry, stoking fears of a data center oversupply, though Microsoft CEO Satya Nadella said on the earnings call: “I feel very, very good” about the pace of the company’s data center plans.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” said a Microsoft spokesperson in an emailed statement.

Shares were down slightly on the news.

This story is developing.

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Volkswagen is reportedly closing in on its own, separate tariff deal with the US

In a bid to get its own tariff rate below the 15% applied to most EU exports, Volkswagen is dangling big US investments.

Speaking at a trade show Monday, VW CEO Oliver Blume said the automaker is in advanced talks on a deal to limit its own tariff burden. Volkswagen reported a tariff cost of $1.5 billion in the first half of the year.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

15% Tariff Would Be ‘A Burden’ on Volkswagen, CEO Says

15% Tariff Would Be ‘A Burden’ on Volkswagen, CEO Says

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

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