Microsoft to Cut 9000 Jobs Amid AI-driven Restructuring Push

Microsoft will reduce its workforce by nearly 4%, resulting in 9000 job loss as a measure to streamline its employee headcount. The tech major’s global workforce strength is around 228,000, and the fresh job cuts are set to impact its headcount across different teams, regions and levels of experience, CNBC reported on Wednesday, citing sources. The development comes around a time when the tech giant is betting big on building artificial intelligence (AI) infrastructure.

“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said in an email, according to CNBC. 

Microsoft’s CEO of gaming, Phil Spencer, via internal communication with employees on Wednesday, said to derive growth the department will end or reduce work in some areas of the business. 

“To position gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” said Spencer, according to CNBC.

Apart from the fresh layoffs, the tech giant trimmed less than 1% of its workforce based on employee performance in January this year. The company cut around 6,000 jobs in the month of May and then close to 300 more in June. The layoffs in May aimed to reduce the number of layers of managers between individuals and senior executives, CNBC reported, citing sources. 

This is Microsoft’s largest job cut attempt since 2023, when it had laid off 10,000 employees. Prior to this, the biggest lay off done by the tech major was in 2014, when the company had cut 18,000 jobs after acquiring Nokia’s devices and services business. 

The tech giant posted $26 billion in net income on $70 billion in revenue for the quarter ending in March.