In a major move, Microsoft has announced the layoff of nearly 9,000 employees from its global workforce. This marks the company’s largest round of job cuts since 2023, when it laid off 10,000 staff.
According to a company spokesperson, this decision aims to make Microsoft more agile, efficient, and aligned with the rapidly changing demands of the global tech market. The layoffs represent about 4% of Microsoft’s total workforce worldwide.
This is the third phase of staff cuts in recent months, as reported by CNN. The spokesperson explained that the company is undergoing structural changes to better compete and grow in today’s fast-paced, AI-driven business environment.
In a memo to employees, Xbox gaming division CEO Phil Spencer stated that long-term success in gaming requires reducing operations in certain areas and flattening management layers to improve productivity.
Another major reason behind this large-scale layoff is the growing use of artificial intelligence (AI) within the company. Microsoft CEO Satya Nadella recently revealed that 20% to 30% of the company’s software code is now generated by AI tools.
Along with Microsoft, other tech giants like Google, Amazon, and Meta have also cut thousands of jobs in recent months. These companies are moving toward leaner, AI-powered models, focusing on automation and future-ready operations to stay ahead in the competitive tech landscape.