Microsoft Set to Cut 7,000 Jobs Amid Increased AI Investment
Microsoft is reportedly preparing to lay off approximately 7,000 employees – about 3% of its global workforce – as part of a broader cost-cutting strategy tied to its growing focus on artificial intelligence.
According to a report by CNBC, the job cuts will span multiple departments and regions, making this the company’s largest round of layoffs since it eliminated 10,000 roles in 2023. The report, which cites a company statement, suggests the latest reductions are aimed at streamlining management layers and are not connected to previous performance-based terminations earlier this year.
While Microsoft has not yet issued an official comment, the decision appears to reflect a wider industry trend, as tech giants continue to invest heavily in AI while trimming costs elsewhere. Google, for example, has also downsized its workforce over the past year in a similar bid to prioritize its AI ambitions.
Despite the job cuts, Microsoft recently delivered stronger-than-expected financial results, with its Azure cloud business showing robust growth. The company’s performance in the last quarter reassured investors, even as concerns about the broader economic outlook persist.
As of June 2023, Microsoft employed 228,000 people globally, with more than half based in the United States.
The layoffs underscore the balancing act many tech firms are now facing—managing short-term financial discipline while aggressively positioning themselves for long-term gains in the rapidly evolving AI landscape.
