Microsoft to cut 9,000 jobs in fresh round of layoffs, says report

WASHINGTON: American tech giant Microsoft will lay off nearly 9,000 employees, about 4 per cent of its workforce — in what is its third round of job cuts in recent months, the company confirmed on Wednesday (local time), according to a CNN report.

The report said this is Microsoft’s largest round of layoffs since 2023, when it cut 10,000 jobs. The move comes amid a broader wave of job cuts in the global tech industry. “We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement, quoted by CNN.

The spokesperson also said the company aims to streamline its management structure and improve productivity by leveraging new technologies.

Many technology firms, including Microsoft, are turning to artificial intelligence (AI) to boost employee efficiency. Earlier this year, Microsoft CEO Satya Nadella said that between 20 and 30 per cent of the company’s code is now written by AI, as Microsoft continues to invest heavily in AI infrastructure.

Meanwhile, several reports have projected a sharp rise in global AI spending. According to a UBS report, global AI investment is expected to grow by 60 per cent year-on-year in 2025 to reach $360 billion. This upward trend is likely to continue into 2026, with another 33 per cent increase projected, pushing the figure to $480 billion.

However, UBS anticipates that the share of AI spending by the so-called Big Four tech giants, Microsoft, Amazon, Alphabet, and Meta, will fall from 58 per cent in 2025 to 52 per cent in 2026. Spending outside these major firms is projected to reach $150 billion in 2025, with China accounting for an estimated 35 per cent of that amount. (ANI)