Microsoft is set to lay off about 3% of its global workforce—approximately 7,000 employees—as part of a broader cost-cutting effort, according to a report from CNBC. The move comes as the tech giant continues to pour billions into artificial intelligence, which it views as a key driver of future growth.
The layoffs will span various departments and regions and are reportedly the largest since Microsoft cut 10,000 jobs in 2023. Unlike a smaller round of performance-related layoffs in January, these cuts are focused on reducing management layers, the report noted.
Microsoft has not yet commented publicly on the layoffs, and its stock saw a slight dip during morning trading.
The move reflects a broader trend in the tech industry, where companies like Google have also reduced headcount while redirecting resources toward AI. Despite the job cuts, Microsoft recently reported strong quarterly results, driven by better-than-expected growth in its Azure cloud business, easing investor concerns amid economic uncertainty.
As of June 2023, Microsoft employed 228,000 people worldwide, including 126,000 in the U.S., according to its annual SEC filing.
