06-Jul-2026 19:42:59
Microsoft Cuts 4,800 Jobs as AI Spending Reshapes Workforce
Microsoft has laid off 4,800 employees, or about 2.1% of its global workforce, as it restructures operations amid massive investments in artificial intelligence. The cuts primarily affect the commercial sales and Xbox gaming divisions and come at the start of the company's new fiscal year. Microsoft said the layoffs reflect changing business priorities rather than AI directly replacing workers, even as it continues to spend heavily on AI infrastructure and organizational restructuring.