Microsoft is ready to fire around 7,000 employees, approximately 3% of its workforce, since it seeks to optimize operations and double its investment in artificial intelligence, CNBC reported. | Photo credit: Gonzalo Fuentes/Reuters
Microsoft is saying goodbye to 3% of its workforce, or approximately 7,000 employees, CNBC reported on Tuesday, since the technology giant seeks to control costs while channeling billions of dollars in its ambitious commitment to artificial intelligence.
The cuts will be at all levels and geographies, and they are probably the largest since Microsoft fired 10000 employees in 2023, according to the report, which cited a company statement.
The company let a small number of employees in January on topics related to performance, but the latest cuts are not related to that and focus on the cuts of cutting cuts, according to the report.
Microsoft did not promote a request for Reuters comments. The company’s shares were slightly lower in morning trade.
As artificial intelligence emerges as an important growth engine, Big Tech has been investing money in space while reducing costs elsewhere to safeguard the gain margins.
The rival Google has also fired hundreds of employees in the last year, since it seeks to control costs and prioritize AI, according to media reports.
Microsoft’s reported movement comes week after the company recorded a stronger growth of Thankasement in its business results and business explosions that compute in the cloud in the last quarter, calming the concerns of investors in an uncertain economy.
The company had a total of 2,28,000 workers, with 1,26,000 employees in the United States at the end of June last year, according to its annual presentation before the SEC.
Posted on May 14, 2025