Microsoft Corporation (MSFT) Restructures Workforce to Power $80B AI Investment

We recently compiled a list of the 10 Best Strong Buy Tech Stocks to Buy. Microsoft Corporation tops our list.

Microsoft Corporation (NASDAQ:MSFT), a global tech leader based in Redmond, Washington, is undergoing strategic restructuring as it intensifies investment in artificial intelligence, and it tops our list for being one of the best strong buy stocks. In July 2025, the company announced the layoff of around 9,000 employees, nearly 4% of its global workforce, as part of cost-control efforts tied to a record $80 billion capital expenditure for fiscal 2025, largely focused on AI infrastructure. The cuts affect various departments, including sales and the King gaming division. The business is also streamlining its organizational structure by reducing management layers and simplifying product lines to enhance agility and innovation.

Despite these workforce reductions, Microsoft Corporation (NASDAQ:MSFT), is accelerating AI integration across its product ecosystem. The company recently launched “Copilot Mode” in its Edge browser, an AI-enhanced tool that analyzes multiple tabs and delegates tasks to improve productivity. Microsoft Research is also advancing large language models (LLMs) to handle more complex reasoning, reinforcing its commitment to AI leadership.

In addition to product innovation, the business is expanding its global partnerships and environmental efforts. Its collaboration with Nvidia aims to apply AI in biodiversity research, while a new research lab in Singapore focuses on advancing innovation in the Asia-Pacific region.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.