Microsoft Cuts 4,800 Jobs Amid AI Spending Push
Tech Giant Trims 2.1% of Workforce as Rising AI Investment Pressures Costs
GG News Bureau
REDMOND (US), July 7: Microsoft is cutting about 4,800 jobs, or 2.1 per cent of its global workforce, as the technology giant restructures operations while investing heavily in artificial intelligence (AI) infrastructure.
The layoffs come amid a broader wave of job cuts across the technology sector, with companies including Amazon and Meta Platforms also reducing headcount as they increase spending on AI.
Microsoft’s shares have fallen nearly 23 per cent in the first half of 2026, their weakest first-half performance since 2022. Earlier this year, the company also offered voluntary buyouts to around 9,000 US employees, or about 7 per cent of its domestic workforce.
While demand for Microsoft’s Azure cloud platform continues to grow, the company is facing rising costs from building AI data centres. It has projected $190 billion in capital spending for 2026, far above market expectations.
The company is expected to announce its quarterly earnings later this month, with investors closely watching whether growing AI investments translate into stronger financial returns.
