Microsoft cuts 9,000 jobs globally as it invests in AI |
Microsoft has announced a second wave of layoffs, impacting approximately 9,000 employees, or 4% of its workforce, as part of a cost-cutting strategy while investing in artificial intelligence infrastructure. The cuts will affect various teams globally, including sales and the Xbox division. The company aims to streamline processes and reduce management levels to enhance efficiency. Despite pledging $80bn in capital spending for fiscal year 2025, rising AI infrastructure costs are affecting profit margins. Other tech giants including Meta and Google have also announced job cuts to improve efficiency. Meanwhile, Microsoft has asked managers to evaluate employees based on how much they use AI, Business Insider reports. In an email to managers, Julia Liuson, president of the Microsoft division responsible for developer tools including AI coding service GitHub Copilot, wrote: "Just like collaboration, data-driven thinking and effective communication, using AI is no longer optional - it's core to every role and every level." She told managers that AI "should be part of your holistic reflections on an individual's performance and impact." |
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