Microsoft is laying off nearly 4% of its workforce in a new round of job cuts, affecting approximately 9,000 employees across various departments.
The tech giant said the move is part of ongoing efforts to streamline operations and reduce staffing costs amid significant investments in artificial intelligence infrastructure.
The company, which had about 228,000 employees worldwide as of June 2024, had already announced layoffs in May, affecting around 6,000 workers.
On Wednesday, Microsoft said it planned to reduce organizational layers by cutting the number of managers and streamlining its products, procedures, and roles.
The company confirmed to journalists that the latest cuts would impact multiple divisions but did not specify which teams would be most affected.
However, reports from Bloomberg over the past two weeks indicate that sales and marketing staff, along with employees in the gaming division, are among those heavily impacted.
According to sources, Xbox chief Phil Spencer informed employees that the gaming unit would also be hit.
Spencer said the cuts would “end or decrease work in certain areas of the business” and follow Microsoft’s broader strategy of removing management layers to boost agility and effectiveness.
While Microsoft is concluding plans to trim its workforce, other major tech companies investing heavily in AI are also tightening their belts.
Meta (Facebook’s parent company) said earlier this year it would trim about 5% of its “lowest performers,” while Google parent Alphabet has laid off hundreds of employees over the past year.
Amazon, too, has made cuts across its business segments, most recently in its books division—following earlier layoffs in its devices, services, and communications units.
Economic uncertainties and rising operational costs have triggered widespread job reductions across corporate America, as companies race to streamline operations and guard against further financial pressures.
