Despite strong investments in artificial intelligence and cloud technologies, Microsoft has announced a new wave of layoffs affecting around 9,000 employees, roughly 4% of its global workforce.

This round of cuts will impact a range of departments, including sales, marketing, gaming (Xbox division), and several business operations units. The announcement comes as Microsoft restructures to optimize efficiency and prioritize AI integration across all its services and platforms.

While the company remains financially strong—thanks to revenue from Azure, Office 365, and its deep partnership with OpenAI—executives have emphasized the need to "realign resources to high-growth opportunities" as AI transforms traditional roles.

A Microsoft spokesperson said:
“This decision is not made lightly. We are committed to supporting affected employees with severance packages and transition services.”

This marks the third major layoff within Microsoft in the past 18 months, reflecting an ongoing shift in talent requirements as AI automation reduces dependence on traditional workforce structures.