Market Beats | Microsoft Cuts 9,000 Jobs in Second Major Layoff; Tesla’s Global Sales Drop for Second Straight Quarter; Trump Says Trade Deal Reached With Vietnam to Avert Tariffs; Witkoff Sells Miami Beach Waterfront Lot for Over $24M; Armani Sales Drop 5% in 2024 Amid China Slowdown; BYD Shelves Mexico Plant Plans

—— Microsoft Cuts 9,000 Jobs in Second Major Layoff; Tesla’s Global Sales Drop for Second Straight Quarter; Trump Says Trade Deal Reached With Vietnam to Avert Tariffs; Witkoff Sells Miami Beach Waterfront Lot for Over $24M; Armani Sales Drop 5% in 2024 Amid China Slowdown; BYD Shelves Mexico Plant Plans

1. Microsoft Cuts 9,000 Jobs in Second Major Layoff

Microsoft Corp. has begun another round of layoffs, cutting approximately 9,000 jobs — its second major workforce reduction this year — as the company aims to control costs while investing heavily in artificial intelligence.

A Microsoft spokesperson said the cuts represent less than 4% of the company’s global workforce and will impact teams across various departments, regions, and levels of experience. The move is intended to streamline operations and reduce management layers.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” the spokesperson said.

Bloomberg previously reported that the job cuts in July would target sales positions and affect units including Xbox. This follows an earlier round in May that saw 6,000 employees laid off, mainly from product and engineering roles.

Across the tech sector, rising AI-related costs — from training large language models to building servers and data centers — are putting pressure on budgets. After spending tens of billions on infrastructure and software, Microsoft has promised Wall Street it will keep expenses under control.

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2. Tesla’s Global Sales Drop for Second Straight Quarter

A new analysis by economists at Yale University’s Budget Lab finds that the Senate version of President Donald Trump’s tax cut bill would cost the bottom 20% of taxpayers an average of $560 per year, while delivering an average gain of $6,055 to the top earners.

The report supports Democratic claims that the bill disproportionately favors the wealthy at the expense of the working poor. The disparity stems from a mix of tax cuts and spending reductions. The poorest Americans would be hit hardest by cuts to Medicaid and SNAP (food stamps), while wealthier taxpayers benefit from income rate reductions and expanded SALT deductions.

A proposal by GOP Senator Rick Scott would cut Medicaid even more, though the Budget Lab notes that over half of Medicaid cost reductions fall on providers rather than enrollees. The analysis also assumes states will replace about 1% of lost income for low-income families.

The Senate is expected to finalize the bill before July 4. The analysis excludes tariffs, which have been floated as a funding source. Including tariffs would make the legislation even more regressive, the Budget Lab warned.

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3. Trump Says Trade Deal Reached With Vietnam to Avert Tariffs

Tesla Inc. reported a 13% drop in global vehicle deliveries for the second consecutive quarter, putting the company at risk of posting back-to-back annual sales declines.

The EV maker delivered 384,122 vehicles in the last three months, leaving it with a shortfall of nearly 110,000 units to make up in the second half of the year in order to return to year-over-year growth.

Though weak, the results beat the lowest analyst estimates, some of which had projected a decline of more than 20%. Tesla shares rose as much as 4% at Wednesday’s market open following the report.

The figures contradict CEO Elon Musk’s mid-May comments that Tesla’s auto business had recovered from an early-year slump, which was partly driven by backlash over his involvement in the Trump administration. The outlook may worsen later this year if Congress passes Trump’s multitrillion-dollar spending bill, which includes the elimination of EV tax credits.

Tesla had pinned hopes on the redesigned Model Y — its best-selling product — to lift second-quarter results. But the company’s otherwise aging lineup is losing appeal to offerings from rivals like BYD and Xiaomi in China and GM in the US.

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4. Witkoff Sells Miami Beach Waterfront Lot for Over $24M

The real estate firm founded by developer Steve Witkoff has sold a waterfront land parcel in Miami Beach for over $24 million — triple the $8 million it paid for the site during the pandemic in 2020.

The off-market deal also set a record for the highest price per square foot ever paid for a residential lot in South Florida, according to the broker citing MLS data. The 17,700-square-foot property at 4766 N. Bay Road includes architectural plans for a mansion.

“This is one of the hottest streets in the country,” said Dina Goldentayer of Douglas Elliman, who represented both buyer and seller. “There’s really no inventory.”

She declined to name the buyer, but public records show the same LLC purchased the neighboring home for $29.5 million in May.

The property sits along Biscayne Bay, offering sunset and skyline views. Notable buyers on North Bay Road include David and Victoria Beckham, Thoma Bravo co-founder Orlando Bravo, and billionaire developer Barry Sternlicht.

The record-breaking $1,370 per square foot transaction stands in contrast to the broader slowdown in South Florida’s real estate market.

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5. Armani Sales Drop 5% in 2024 Amid China Slowdown

Italian luxury brand Armani Group reported a 5% decline in sales in 2024, as macroeconomic uncertainty and slowing demand in China weighed on the broader luxury sector.

The group, founded by Giorgio Armani in the 1970s, reported net consolidated revenue of €2.3 billion ($2.7 billion) for the year, according to an emailed statement Wednesday. Cash holdings fell about 40% to €570 million due to renovations of flagship stores.

Armani joins other fashion and luxury brands facing sluggish Chinese demand. Hermès cited lower traffic in its Chinese stores earlier this year, and LVMH has warned of weak consumer sentiment in the country.

Europe accounted for nearly half of Armani’s revenue, while Asia Pacific fell to around 19%, down slightly from 2023, reflecting the China slowdown. The US made up approximately 22%.

“I am confident that the current market difficulties and international tensions will ease in the near future,” Giorgio Armani said in the statement.

The company made record investments of €332 million in 2024 — nearly double the amount from 2023 — including refurbishments of its Madison Avenue store in New York and the Emporio Armani store in Milan.

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6. BYD Shelves Mexico Plant Plans

China’s largest electric vehicle maker, BYD Co., has shelved plans to build a major auto plant in Mexico due to rising geopolitical tensions and uncertainty surrounding US President Donald Trump’s trade policies.

The company still intends to expand in the Americas but has no timeline for fresh investment, Executive Vice President Stella Li said Tuesday in Bahia, Brazil, where BYD is opening its first manufacturing facility outside of Asia.

“Geopolitical issues have a big impact on the automotive industry,” Li said. “Now everybody is rethinking their strategy in other countries. We want to wait for more clarity before making our decision.”

BYD had previously scouted three potential sites in Mexico for the plant but stopped the search last year, awaiting the outcome of the US presidential election, Bloomberg News reported in September.

The company’s Brazil project continues as part of its international expansion, even as North American plans are paused.

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7. Tesla Rolls Out Robotaxi Service, Shares Jump Nearly 9%

Tesla Inc. shares rose sharply after the company launched its long-awaited driverless taxi service, marking a quiet but meaningful step toward what Elon Musk envisions as a transformative business model.

The first robotaxi rides began Sunday in a limited area of Tesla’s hometown, Austin, Texas. Each vehicle had a company employee in the front passenger seat to monitor for safety. Tesla selected a group of loyal retail investors and social-media influencers to test the service and live-stream their experiences.

In one video, Herbert Ong, who runs a Tesla fan account, praised the car’s acceleration and parking capabilities. Another user, @BLKMDL3, said his ride was smoother than with a human driver. Sawyer Merritt, a well-known Tesla-focused investor, called the experience “awesome.”

Tesla opted for an unusually low-key rollout with no formal launch event, relying on word of mouth and media buzz instead. This contrasted sharply with past unveilings like the 2022 “Cyber Rodeo” or last year’s invite-only prototype event in Hollywood.

While Musk has warned that autonomy may not significantly impact Tesla’s financials until at least next year, the debut of the service boosted investor optimism.

Tesla shares jumped as much as 11% on Monday—the biggest intraday gain since April 9—before settling at an 8.7% rise by early afternoon.

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