Microsoft has announced plans to lay off up to 9,000 workers globally, marking its fourth round of job cuts this year.
The decision comes as the company leans further into artificial intelligence, reshaping its priorities in the fast-changing tech landscape.
The layoffs represent about 4% of Microsoft’s total workforce of 228,000 employees. Though exact departments were not listed, industry insiders say the Xbox division may be affected.
A company spokesperson said, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.”
AI Overhaul Meets Human Cost
The company has already shed 6,000 jobs earlier in May. Official records from Washington State show that more than 800 jobs are being lost in Redmond and Bellevue — cities that house key Microsoft campuses.
This new wave of layoffs reflects the company’s growing investment in AI. Microsoft is injecting $80 billion into building massive data centres meant to power future models and tools.
AI is no longer a side project. It is Microsoft’s new core.
The company recently created a dedicated Microsoft AI division and appointed Mustafa Suleyman, a British AI pioneer and co-founder of DeepMind, to lead it.
A top executive stated that AI will “fundamentally define the next half-century,” predicting that it will alter how humans work, think, and communicate.
AI Arms Race Accelerates Across Tech Giants
Microsoft holds a major investment in OpenAI, the developer behind ChatGPT. However, tensions appear to be rising.
Reports suggest that Microsoft’s in-house AI assistant, Copilot, is struggling to win over corporate users. Many prefer ChatGPT directly.
Meanwhile, Meta is ramping up recruitment in the AI space. Some top talents reportedly received signing bonuses as high as $100 million, with CEO Mark Zuckerberg personally leading the push.
OpenAI’s chief Sam Altman confirmed that Meta had approached members of his team with massive offers.
Amazon isn’t sitting idle either. Its CEO Andy Jassy recently stated that some company roles may be replaced entirely by AI tools in the coming years.
For Microsoft, AI is now a double-edged sword. It offers growth, but not without painful sacrifices.
As one chapter closes for thousands of employees, the company’s AI-powered future opens — uncertain, fast-moving, and unforgiving.
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