Microsoft announced on Wednesday it will lay off nearly 4% of its workforce—around 9,120 employees—as part of an effort to cut costs while heavily investing in artificial intelligence infrastructure. This follows a previous layoff of about 6,000 workers announced in May, with the latest cuts primarily affecting sales roles. With approximately 228,000 employees globally, Microsoft is also streamlining operations by reducing organizational layers and minimizing management staff. The company faces shrinking margins due to the high costs associated with expanding its AI capabilities, leading to a projected decline in its cloud margins for the June quarter. In parallel, Microsoft’s gaming division, specifically its King unit responsible for Candy Crush, is cutting around 200 jobs, representing 10% of its workforce. These layoffs reflect a broader trend among major tech companies, including Meta, Google, and Amazon, which are all reducing headcounts amid economic uncertainties and rising costs.
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