Thu, 03 Jul 2025

Thu, 03 Jul 2025 Microsoft to cut up to 9,000 jobs as it invests in AI

The US tech giant will axe 4% of its global workforce and plough money into artificial intelligence.
Microsoft will cut up to 9,000 jobs globally, approximately 4% of its workforce. The tech giant has been making organizational changes to position itself for success in a competitive market. Multiple divisions are expected to be affected, but it's unclear which ones. However, reports suggest that the Xbox video gaming unit may be hit by the layoffs. Microsoft is investing heavily in artificial intelligence (AI) and data centers to train AI models, with plans to spend $80bn on the effort. The company has been shifting its focus towards developing AI capabilities in recent years. The cuts come as major tech companies are competing for top AI talent, with Meta poaching from rivals to form a "superintelligence" lab. OpenAI boss Sam Altman revealed that members of his team have received signing bonuses of over $100m from Meta. Microsoft's decision to lay off thousands of workers follows previous rounds of redundancies in 2025, including one in May where 6,000 roles were cut.
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