Redmond, July 3 (V7N) — Microsoft Corporation has announced plans to cut approximately 4% of its global workforce, or about 10,000 jobs, as the company continues to restructure its operations and make bold investments in artificial intelligence (AI) technologies.

The job cuts are expected to affect roles across various departments and geographies, with some layoffs already underway. A spokesperson confirmed the move on Tuesday, noting that the company is realigning its workforce to support strategic priorities — most notably, its aggressive push into AI-driven products and services.

"This organizational adjustment is part of our ongoing strategy to remain agile and best position the company for future growth, especially in the evolving AI landscape," Microsoft said in a statement.

AI Investment and Restructuring

The layoffs come at a time when Microsoft is doubling down on AI integration across its product lines, including Windows, Office, Azure cloud services, and its Copilot AI tools. Over the past two years, Microsoft has committed billions of dollars to its partnership with OpenAI, the company behind ChatGPT, and continues to embed generative AI capabilities into nearly every aspect of its software ecosystem.

Analysts say the layoffs are not a sign of financial trouble, but rather a strategic reshuffling. "Microsoft is positioning itself as a frontrunner in AI. These job cuts, while difficult, are aimed at making room for roles that support next-generation technologies," said tech industry analyst Karen Fielding.

Previous Layoffs and Financial Context

This is not the first wave of cuts for the tech giant. In early 2023, Microsoft eliminated 10,000 jobs, citing similar reasons related to a shift in business focus toward high-growth areas. Despite the reductions, Microsoft remains one of the world's most valuable companies, with a market capitalization exceeding $3 trillion.

The company reported strong earnings in its most recent quarter, fueled by cloud computing growth and early monetization of AI tools. CEO Satya Nadella has repeatedly emphasized AI as the defining technology of the next decade, and the company is aggressively hiring in key AI engineering and research roles even as it trims headcount elsewhere.

Employee Impact and Support

Microsoft said affected employees will receive severance packages, healthcare benefits, job transition support, and other resources. The company also reaffirmed its commitment to treating departing employees with dignity and respect during the transition process.

“While these changes are necessary for the long-term success of our business, we recognize the personal impact they have on our colleagues,” the company added.

As the global technology landscape rapidly evolves with AI at the forefront, Microsoft’s latest move reflects a growing trend among tech giants: shedding legacy roles while investing heavily in innovation and future-readiness.

END/WD/SMA/