AI Revolution Triggers Microsoft’s Largest Layoffs Since 2023
Microsoft, the tech titan, has announced its most significant layoffs since 2023, slashing nearly 9,000 jobs which accounts for just under 4% of its global workforce. This move marks the second major round of cuts for the year, following the 6,000 layoffs in May. The total job cuts for 2025 now stand at over 15,000 positions.
The layoffs span across various divisions, geographical locations, and seniority levels. The Xbox gaming division has been particularly hit hard. “Our aim is to implement the necessary organizational changes that will position the company and teams for success in a rapidly changing marketplace,” stated a spokesperson from Microsoft. The company is now focusing on reducing management layers and is investing heavily in AI infrastructure.
Satya Nadella, the CEO of Microsoft, recently pointed out that nearly 30% of Microsoft’s code is now generated by AI tools. This highlights the growing influence of this technology in the company’s operations. Despite an 18% increase in quarterly net income to $25.8 billion, Microsoft is following in the footsteps of other tech giants like Meta, Google, and Amazon in reducing its workforce as the industry shifts towards AI-driven operations.
Source: CNBC