Microsoft is laying off approximately 6,000 employees, less than 3% of its workforce. The move comes as the tech giant increases its investment in artificial intelligence. These cuts will occur across all levels and geographies within the company.
The layoffs are reportedly the largest since Microsoft cut 10,000 jobs in 2023. Microsoft is prioritizing AI, while also controlling costs to protect profit margins. The company had 228,000 workers as of June last year.
Microsoft has allocated $80 billion in capital spending this fiscal year. The majority of this investment is focused on expanding data centers. This expansion aims to alleviate capacity bottlenecks for AI services.