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,...