Microsoft has announced another round of layoffs, cutting around 4,800 jobs worldwide as the company continues to ramp up spending on artificial intelligence while working to reduce operating costs.
The layoffs affect about 2.1 percent of Microsoft’s global workforce and reflect a growing trend across the technology industry, where companies are reshaping their businesses around AI.
Tech giants including Amazon and Meta have also reduced their employee numbers this year as billions of dollars flow into AI infrastructure. Combined investments in artificial intelligence by the world’s largest technology companies are expected to exceed $700 billion in 2026, making AI the industry’s biggest spending priority.
The latest job cuts come after a difficult first half of the year for Microsoft. The company’s stock has fallen nearly 23 percent since the beginning of 2026, marking its weakest first-half performance since 2022. Earlier this year, Microsoft also offered voluntary buyouts to nearly 9,000 employees in the United States, representing about seven percent of its U.S. workforce. The company typically reviews staffing levels and spending plans at the end of its fiscal year in June.
Despite the layoffs, Microsoft’s Azure cloud platform continues to benefit from soaring demand for AI services. Azure previously served as the exclusive cloud provider for OpenAI’s AI models until April, helping drive strong cloud revenue growth. However, expanding data centers to support advanced AI services has become increasingly expensive, placing greater pressure on the company’s finances.
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