Microsoft’s AI push hits harder: 9,000 more jobs axed in latest layoff wave

Microsoft has initiated a fresh round of mass layoffs, letting go of 9,000 employees across various departments, less than a month after slashing 6,000 roles. This brings its total job cuts in recent months to over 15,000. According to reports, the latest move affects just under 4% of the company’s global workforce, including sections of its gaming division.

Also Read:Microsoft set for another round of layoffs — Xbox Division in focus

The company states these layoffs are part of broader organizational changes aimed at increasing efficiency and aligning teams with evolving business goals. In an internal communication, Microsoft Gaming CEO Phil Spencer explained that work in certain areas would be scaled down or discontinued altogether to focus more sharply on long-term priorities. He also mentioned that layers of management would be reduced to boost agility and effectiveness.

Although Microsoft attributes these cuts to strategic restructuring, industry analysts suggest the rapid expansion of AI is a key underlying factor. What began as a tool to ease human workloads has now evolved into a catalyst for widespread automation and job displacement across the tech sector.

This trend is not unique to Microsoft. Other tech giants, including Meta, Google (Alphabet), and Amazon, have also downsized significantly while simultaneously investing heavily in AI. Meta is targeting its lowest-performing employees, Google has quietly removed hundreds of roles, and Amazon has trimmed staff in its devices, books, and communications divisions.

Microsoft had already cut nearly 10,000 jobs in 2023, and the current layoffs mark another major step in its AI-driven transformation.