Microsoft has become only the second company to ever reach a $3 trillion market valuation, achieving this milestone for the first time after laying off 1900 workers from its gaming divisions. This landmark was initially surpassed yesterday but dropped below before the markets closed, only to climb again and close at $3.01 trillion today, with each share priced at $404.87. It is the second company to accomplish this feat, following Apple, which achieved it in December of the previous year and has been competing with Microsoft for the title of the most valuable company on Wall Street since then. The recent surge in Microsoft stock has been largely fueled by a series of AI announcements and a slew of new product launches, as highlighted by The Verge.
This significant stock achievement coincides with Microsoft’s decision to lay off 1900 employees from its gaming division, in part as a consequence of the company’s acquisition of Activision Blizzard for $69 billion, which was finalized last year. A significant number of those affected were from Activision Blizzard divisions, including some who were working on a now-cancelled survival game. Phil Spencer, the head of gaming, described the layoffs as part of a plan to establish a sustainable cost structure to facilitate the expansion of the overall business. Additionally, Mike Ybarra, president of Blizzard Entertainment, announced his departure from the company.
Nearly a year ago, Microsoft also laid off 10,000 employees across all its divisions, including some from its gaming divisions. In its latest financial report released in October 2023, covering the quarter ending September 2023, Microsoft reported a revenue of $56.5 billion, marking a 13% year-over-year increase, with Xbox content and services revenue also rising by 13% over the same period. The company is expected to announce its full-year earnings for 2023 next week.
Rebekah Valentine is a senior reporter for IGN. Have a news tip? Reach out to rvalentine@ign.com.
