Microsoft Lays Off 15,000 Employees, Pushes AI Skill Development

Microsoft continues to lead the technology sector in AI investment and cloud services, with a 6.3% projected growth in AI-related tools and 67% of CIOs planning to increase spending on Microsoft solutions, including nearly 60% boosting Azure cloud expenditure. Despite economic uncertainties, Microsoft’s AI and cloud offerings remain a top priority for businesses, positioning the company to capture a significant share of incremental IT budgets and driving optimism in its stock price. Concurrently, Microsoft has laid off 15,000 employees in 2025, particularly in Xbox and sales divisions, while shifting focus to AI proficiency by making AI skills mandatory in employee performance evaluations and urging remaining staff to enhance their AI capabilities. This strategic pivot reflects Microsoft’s commitment to embedding AI deeply within its workforce and product offerings, including plans to use AI to assess employee performance and set future standards. The move to replace some sales roles with technical solutions engineers skilled in AI underscores the company’s emphasis on AI-driven customer engagement and innovation. Overall, Microsoft’s dual approach of continued AI investment and workforce transformation highlights its drive to maintain leadership in the evolving AI and cloud markets.