Microsoft Cuts 9000 More Jobs, Here’s the Reason!

Microsoft has taken a major step by cutting around 9,100 jobs, which is nearly 4 percent of its total workforce of 228,000 employees. This move follows a previous layoff of about 6,000 employees in May, showing the company’s continued efforts to restructure its operations. These job cuts are mainly due to Microsoft’s heavy investment in artificial intelligence and related technologies like cloud computing and cybersecurity.

As Microsoft shifts its focus toward AI-led growth, it is shutting down older divisions and reducing layers of management to improve efficiency. These changes are aimed at cutting costs and boosting performance. Teams involved in sales, marketing, and gaming have been among the most affected. Popular gaming units like Xbox, King, and ZeniMax have seen a significant number of roles eliminated. Even senior employees and management roles were not spared.

This situation has created stress among Microsoft workers across different countries, with many feeling uncertain about their future in the company. Even though Microsoft remains profitable, the pressure to stay ahead in AI and cloud services is driving these tough decisions. Company leaders have said that they want to build faster and more agile teams that can support their new technology priorities.

These layoffs are part of a broader trend in the global tech industry. Other major companies like Amazon, Google, Meta, and IBM are also reducing staff to deal with rising costs and to reorganize for an AI-driven future. In fact, more than 61,000 tech jobs have already been cut this year across various firms.

Experts believe that more layoffs may continue as companies adapt to automation and cost pressures. Employees are being encouraged to learn new skills, especially in AI and cybersecurity, to stay relevant in this changing landscape. The full effect of these job cuts will likely be seen from the 2026 financial year onward, as companies settle into their new operating models.

For now, Microsoft is focused on aligning its workforce with its long-term goals. The message is clear—AI is changing how tech companies work, and those who want to stay in the game will need to adapt quickly.