Microsoft to Cut 4% of Workforce Amid AI Investments: New India Abroad Reports
New India Abroad
reports that Microsoft will lay off nearly 4% of its global workforce as the
tech giant seeks to manage expenses while ramping up investments in artificial
intelligence (AI). The announcement, made on July 2, comes as part of a broader
strategy to streamline operations and reduce organizational complexity.
Microsoft employed
approximately 228,000 people globally as of June 2024. In May, the company had
already laid off around 6,000 employees, with plans to further reduce its
workforce—particularly in sales—according to
Bloomberg News.
The company’s $80
billion capital expenditure commitment for fiscal year 2025 reflects its
aggressive push into AI infrastructure. However, the heavy investment has taken
a toll on margins, especially within its cloud division, which is expected to
see lower margins in the June quarter compared to the previous year.
In addition to the
broader layoffs, Microsoft’s
King division in Barcelona, known for developing Candy Crush, will cut
about 10% of its staff, equating to 200 jobs, Bloomberg reported.
Microsoft stated that
it aims to reduce managerial layers and simplify its product and operational
structure to remain competitive and agile.
This move mirrors
similar actions by other tech giants. Meta, the parent company of Facebook,
recently announced it would cut 5% of its lowest-performing employees. Google
has also seen significant layoffs, and Amazon continues to trim roles across
various departments, including its books, devices, and communications teams.
Across the U.S.,
economic headwinds and mounting operational costs are driving corporate
layoffs. As New India Abroad highlights, Microsoft’s decision underlines a
growing trend in Big Tech—balancing innovation and cost control in the race to
dominate the future of AI.
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