Microsoft cuts approximately 4% jobs amid heavily ai bets

(Reuters) – Microsoft (MSFT.O) fires nearly 4% of its workforce, the company said Wednesday in its latest job cuts as the Tech giant tries to keep costs down amid heavy investments in artificial intelligence infrastructure.

The company, which had around 228,000 employees worldwide as of June 2024, announced a layoff in May, affecting around 6,000 workers. Bloomberg News reported last month that it planned to cut thousands of jobs, particularly sales.

Although Windows Maker had pledged to capital expenditure of $80 billion in 2025, the rising costs of AI infrastructure scaling are heavily on margins, and the cloud margin for the June quarter is expected to shrink from last year.

Microsoft said Wednesday that it plans to reduce the organizational base of managers and streamline products, procedures and roles.

The Seattle Times first reported the layoffs on Wednesday.

Separately, Bloomberg News reports that Microsoft's Barcelona-based King Division will be making Candy Crush video games.

Microsoft confirmed to Reuters that the gaming division was affected by layoffs, but did not provide details, although not the majority of the units.

Hi-TechPia, a major company that invests heavily in artificial intelligence, has also announced job openings.

Economic uncertainty and rising costs have led to layoffs across the company sector as companies rush to streamline operations and streamline hedges against further cost pressures.