Microsoft is reportedly preparing to announce another round of job cuts as the technology giant continues efforts to reduce costs while increasing investment in artificial intelligence.
According to a report by Business Insider on Wednesday, citing people familiar with the matter, the company is expected to unveil the latest layoffs next week.
The planned cuts are expected to affect thousands of employees across several divisions, including Microsoft’s sales and consulting teams, as well as its Xbox gaming business.
Despite the scale of the reductions, the report said the latest round of layoffs will be smaller than those carried out last year. The cuts are expected to account for fewer than 2.5 per cent of Microsoft’s global workforce, which currently stands at about 220,000 employees.
Microsoft has undertaken a series of workforce reductions over the past three years as part of a broader strategy to streamline operations and manage expenses.
The company, like many of its peers in the technology sector, has increasingly redirected resources towards expanding its artificial intelligence capabilities amid intensifying competition in the rapidly evolving market.
The reported job cuts come as Microsoft continues to invest heavily in AI infrastructure, products and services, reflecting the company’s long-term strategy to strengthen its position in one of the industry’s fastest-growing segments.
Microsoft has not publicly commented on the reported layoffs.
