Microsoft Makes Major Cuts Amid Massive AI Investment
Tech giant Microsoft is set to lay off nearly 6,000 employees globally — about 3% of its total workforce — as part of a cost-management strategy tied to its heavy investment in artificial intelligence (AI), the company confirmed on Tuesday. The layoffs will affect staff across all levels and regions, according to a report by Reuters.
This marks Microsoft’s largest round of job cuts since it laid off 10,000 employees in 2023.
In a statement, Microsoft said, "We are continuing to align our organizational structure to support our long-term strategy and success in a dynamic market environment." Despite strong recent growth and profits in its Azure cloud business, the company noted that “margin pressures have emerged due to significant capital expenditures in building AI infrastructure.”
Microsoft is reportedly planning to spend $80 billion this fiscal year to expand its data center capacity, reflecting its commitment to scaling AI services globally.
