Microsoft has reached a $3 trillion market valuation, becoming the second company to do so after Apple. The achievement came as its stock closed at $3.01 trillion, or $404.87 per share, primarily fueled by its focus on AI and new product announcements.

However, this milestone coincided with the layoff of 1,900 workers from its gaming division, partly attributed to the effects of its $69 billion Activision Blizzard acquisition. Many of those laid off were from Activision Blizzard, including teams from a canceled survival game. Microsoft's gaming head, Phil Spencer, described the layoffs as necessary for a sustainable cost structure.

This follows a more extensive layoff of 10,000 employees across Microsoft a year ago. Despite these layoffs, Microsoft reported a 13% increase in revenue year-over-year in its latest quarterly earnings, with Xbox content and services growing by 13%. The company is set to release its full-year earnings for 2023 soon.

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