Microsoft has announced a small reduction of less than 1% of its workforce, primarily focusing on underperforming employees as part of a broader strategy to optimize performance. This decision follows prior layoffs and restructuring efforts, including significant cuts post-Activision Blizzard acquisition. Despite strong financial results, Microsoft's stock performance has lagged behind its peers, raising concerns about its future growth, especially with the slow rollout of its AI-driven Microsoft 365 Copilot. The company's ongoing investments in AI and cloud services underscore its commitment to adapting in a competitive tech landscape.