Why Microsoft Is Making These Layoffs
Microsoft said it would eliminate around 7,000 jobs, which is 3% of the company’s international workforce. Cuts are most concentrated in mid-management positions because the company seeks to be leaner and more efficient.
The firm explained that this is not about underperformance but about reorganizing teams to enable long-term objectives — particularly around artificial intelligence.
“At Microsoft, we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” a company spokesperson said.
Where the Cuts Will Happen
Employees around the world will be affected, but a significant number — nearly 2,000 workers — are based in Microsoft’s home state of Washington. Jobs being cut include software engineers and product managers across several departments.
Teams like Xbox, LinkedIn, and others are also seeing reductions.
Big Bets on Artificial Intelligence
Microsoft’s transition is just one part of an even larger gambit: going all-in on AI. Microsoft plans to spend a massive $80 billion in 2025 to develop its AI tech and the necessary systems.
This includes growing its partnership with OpenAI and adding features like Microsoft Copilot to popular programs like Word, Excel, and Teams. Even though Microsoft recently cut some jobs, their recent financial results were good, showing the company is financially healthy and focused on investing in future technologies.
Support for Affected Employees
Microsoft claims it is helping the workers who are being laid off with severance pay, career assistance, and access to upskilling opportunities.
According to the company, these changes are about “aligning business priorities with long-term growth” and preparing the organization for new challenges and technologies.
Microsoft Joins a Wider Trend in Tech
Microsoft isn’t the only tech giant making this kind of move. Google, Meta, and others have also cut jobs in recent months to shift focus toward AI development and automation.
The industry is evolving rapidly, and companies are retooling in order to be ahead of the curve in an increasingly machine-dominated world.
