Microsoft expects $800 million impairment charge in Q2 2025 due to GM’s cruise exit

(Reuters) – Microsoft Corp said in a statement on Wednesday that it expects to record impairment charges of about $800 million in the second quarter of fiscal 2025 after General Motors exits its Cruise self-driving business.

General Motors said Tuesday it will end development of robotaxis, in which it has invested more than $10 billion since 2016, citing competition in the robotaxi market and the “time and resources” that will be needed to scale the business.

Microsoft acquired a minority stake in Cruise in January 2021 in a new combined equity investment of more than $2 billion, which included institutional investors such as Honda Motor Co.

The Windows maker also said the impairment charge would have a negative impact of about 9 cents on earnings per share in the second quarter.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Pooja Desai)