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Microsoft to cut nearly 3% of global workforce amid AI investment pressures

14 May 2025
in Business
Reading Time: 3 mins read
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Microsoft to cut nearly 3% of global workforce amid AI investment pressures
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Microsoft is laying off approximately 6,000 employees worldwide — nearly 3% of its global workforce — in its largest round of job cuts since early 2023.

The move comes as the $3.3 trillion tech giant seeks to manage the growing financial pressure from its aggressive investment in artificial intelligence infrastructure, despite delivering strong quarterly results and robust growth in its cloud computing division, Azure.

The layoffs will affect staff across multiple areas of the business, including LinkedIn and Xbox, as the company undergoes what it described as “organisational changes necessary to best position the company for success in a dynamic marketplace.”

Microsoft last reported a global headcount of 228,000 full-time employees in June 2023, with around 55% based in the United States. The current round of job losses, although not officially quantified by the company, is expected to impact around 6,000 roles globally.

This marks the largest restructuring since Microsoft cut 10,000 positions — nearly 5% of its workforce — in early 2023, when the tech sector broadly pulled back after rapid hiring during the pandemic-era boom.

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