• Source:JND
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Microsoft has initiated another wave of job cuts, this time affecting around 9,000 employees — roughly 4% of its global workforce. The layoffs span various teams across different countries and impact professionals at all experience levels.

Unlike its usual timing at the end of the fiscal year, Microsoft made this announcement on July 2, just the second day of its new financial cycle. According to a CNBC report citing a company spokesperson, the decision is part of ongoing organisational changes aimed at positioning Microsoft for long-term success in a fast-moving tech landscape.

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This marks the latest in a series of job cuts by the company. In January, Microsoft said it would reduce its workforce by 1% based on performance reviews. That was followed by over 6,000 layoffs in May and another 300 in June. In 2023, Microsoft laid off 10,000 employees. Taken together, these cuts show a sustained effort to trim headcount. The current round is now the company’s second-largest layoff in history — surpassed only by the 18,000 jobs slashed in 2014.

Although Microsoft hasn’t offered a specific reason for the latest layoffs, the rise of AI-powered tools — particularly coding assistants — is believed to be reshaping workflows internally. While Microsoft hasn’t officially launched such a tool yet, it’s reportedly adjusting its internal processes to integrate AI-driven efficiency into software development. Google recently introduced its own version of these tools, and similar moves across the industry hint at a broader transition toward automation.

The shift is already influencing the roles of developers, as AI begins to take over some routine coding tasks. These changes are likely contributing to Microsoft’s restructuring strategy.

Despite the layoffs, Microsoft’s stock remains strong. While it saw a slight dip in premarket trading following the announcement, it’s still up 16% year­­-to-date and has surged 150% over the past five­­ years.

Meanwhile, competitors like Meta are aggressively hiring, investing billions to bring in top AI researchers. Big Tech as a whole appears to be rebalancing — reducing headcount in some areas to double down on AI talent and innovation.

Microsoft’s gaming division may also be affected. Reports last month indicated that more job cuts are expected within Xbox, which has been under pressure to boost margins after Microsoft’s $69 billion acquisition of Activision Blizzard. Back in September 2024, the company laid off around 650 Xbox employees, mainly in corporate and support functions, as part of its post-acquisition reorganisation.

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With automation and AI rapidly reshaping the tech world, Microsoft’s latest move underscores how even the biggest players are being forced to evolve — and make tough decisions — to stay ahead.