Microsoft is laying off nearly 4 percent of its global workforce — approximately 9,000 employees — as part of a strategy to reduce costs and reshape operations amid significant investment in artificial intelligence (AI) infrastructure.
The layoffs follow a previous round in May that affected around 6,000 workers, with the most recent cuts reportedly hitting sales teams and the Barcelona-based King division, responsible for the popular Candy Crush game, where 10 percent of staff — around 200 jobs — are being eliminated, Reuters news report said.
The US-based technology giant, which had about 228,000 employees as of June 2024, is facing rising expenditures tied to its aggressive AI expansion. Microsoft has committed $80 billion in capital spending for fiscal 2025, much of it directed toward building out AI capabilities and cloud infrastructure. These investments, while positioning the company at the forefront of the AI race, are putting pressure on profit margins — particularly in its cloud business, where margins are expected to tighten in the June quarter.
Microsoft on April 30 reported results for the quarter ended March 31, 2025, with revenue reaching $70.1 billion, up 13 percent. Microsoft’s operating income rose 16 percent to $32 billion. Microsoft’s net income grew 18 percent to $25.8 billion.
Microsoft’s Chairman and CEO Satya Nadella credited the software company’s performance to its continued innovation in cloud and AI, calling them essential drivers for business efficiency and growth.
In a move to improve efficiency and reduce bureaucracy, Microsoft said it will streamline organizational layers, reduce the number of managerial roles, and simplify product and operational structures. Microsoft did not reveal the likely impact in India due to the job cut.
Job cut at Big Tech
Microsoft’s decision mirrors broader trends across Big Tech. Meta, Alphabet, and Amazon have all announced job cuts this year despite strong AI-driven growth narratives, citing cost optimization, operational efficiency, and the need to offset the rising cost of scaling AI systems.
Meta began its latest round in January by cutting about 5 percent of its global headcount — roughly 3,600 employees — focusing on those labeled as “low performers.” The company is restructuring Reality Labs as well, with over 100 layoffs in its Oculus Studios and Supernatural fitness app teams. Across 2022 and 2023, Meta slashed more than 21,000 jobs, BusinessInsider reports.
Alphabet/Google has reduced staffing this year, cutting hundreds of roles in its Platforms & Devices division — covering Android, Pixel, and Chrome — and offering voluntary buyouts in cloud and hardware units. These moves follow earlier reductions in cloud operations this year, and come after the 2023 layoff of about 12,000 employees (6 percent of its workforce), IndiaToday reports.
Amazon has recently eliminated around 100 positions within its Devices and Services division, impacting teams behind Echo, Alexa, Kindle, and self-driving projects. CEO Andy Jassy has signaled that AI-driven efficiency gains will lead to a leaner workforce in the years ahead, with future reductions expected to come through attrition, The Wall Street Journal reports.
Rajani Baburajan
