Microsoft announced on Wednesday that it will be eliminating nearly 4% of its workforce, marking the latest wave of job reductions as the tech giant seeks to control expenses amidst significant investments in artificial intelligence infrastructure.
As of June 2024, the company had approximately 228,000 employees globally. In May, Microsoft had already revealed plans to cut about 6,000 positions and was reportedly preparing to reduce thousands of jobs, particularly within its sales department, according to Bloomberg News.
The company has committed to an $80 billion capital expenditure for its fiscal year 2025. However, the increasing costs associated with scaling its AI infrastructure have put pressure on profit margins, with expectations that its cloud division’s margin will decrease compared to the previous year.
In its announcement on Wednesday, Microsoft indicated a plan to streamline operations by reducing managerial layers and simplifying its products, processes, and roles.
The Seattle Times was the first to report the news regarding the layoffs earlier on Wednesday. In a related development, Bloomberg News reported that King, a division of Microsoft based in Barcelona known for the Candy Crush video game, is planning to cut around 200 jobs, which represents a 10% reduction in its staff.
Other major tech companies that are ramping up investments in artificial intelligence have similarly announced job cuts. Earlier this year, Facebook’s parent company Meta stated it would reduce about 5% of its workforce consisting of its lowest-performing employees, while Alphabet’s Google has also laid off hundreds in recent months.
Additionally, Amazon has conducted job cuts across various segments, including its books division, alongside prior reductions in its devices and services unit and communications staff.
The ongoing economic uncertainties and climbing costs have prompted layoffs across different sectors within Corporate America, as companies aim to streamline operations and mitigate potential future cost pressures.
© Thomson Reuters 2025
