Microsoft lays off 9,000 workers to boost AI investments

Microsoft has announced a major round of layoffs, cutting up to 9,000 jobs, which represents 4% of its 228,000-strong global workforce. The company is focusing heavily on artificial intelligence (AI) and is planning to invest $80 billion in building large data centres to train AI models. While the company has not disclosed which divisions will be affected, there are reports that the Xbox gaming unit may be impacted. Microsoft has already made several rounds of job cuts in 2025, including a reduction of 6,000 positions in May. The company’s shift towards AI is part of a broader industry trend, with Microsoft also investing in AI technologies, chips, and data infrastructure. It has hired AI experts like Mustafa Suleyman to lead its Microsoft AI division, and is a key investor in OpenAI, the creators of the ChatGPT chatbot. Meanwhile, other tech giants like Meta and Amazon are also investing heavily in AI and competing for top talent in the sector. The layoffs come at a time when AI technologies are reshaping the tech landscape, but the transition has also led to job cuts in various areas of the industry.