Microsoft Lays Off 4,800 Workers Amid AI-Driven Restructuring
Microsoft has announced another round of significant layoffs as it begins its new financial year. The technology giant is cutting approximately 4,800 employees, which amounts to roughly 2.1 percent of its total workforce.
The majority of affected positions are in Microsoft's commercial sales business and the company's Xbox division. This follows a previous round of layoffs around a year ago, when Microsoft cut approximately 9,100 positions.
In an internal memo to employees, Amy Coleman, executive vice president and Microsoft's chief people officer, attributed the job losses to a changing technology industry. Coleman emphasized the need to "adjust resources and roles and shift how we operate" in response to how artificial intelligence is impacting companies like Microsoft.
The layoffs come as Microsoft continues to heavily invest in AI capabilities across its product portfolio, including its Azure cloud platform and Copilot AI features integrated throughout its software suite. The company has been positioning itself as a leader in enterprise AI adoption, a strategy that appears to be driving operational changes within the organization.