Microsoft has announced around 4,800 job cuts, affecting 2.1 percent of its global workforce, as it balances major AI investments with cost control. The company is facing higher data centre expenses despite strong Azure AI demand. The layoffs follow earlier buyouts and come amid wider tech industry workforce reductions.
Microsoft has announced another round of job cuts, eliminating around 4,800 positions, or approximately 2.1 percent of its global workforce, as the technology giant continues to invest heavily in artificial intelligence (AI) while seeking to improve operational efficiency.
The latest layoffs come amid a broader trend across the technology industry, where companies are balancing massive AI investments with efforts to control costs.
Industry leaders such as Amazon and Meta have also reduced their workforces this year as spending on AI infrastructure continues to rise. Global AI-related investments by major technology companies are expected to surpass $700 billion in 2026.
The announcement follows a challenging first half of the year for Microsoft, with the company's shares declining nearly 23 percent during the first six months of 2026, marking their weakest first-half performance since 2022.
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