Microsoft Lays Off 9,000 Globally Amid AI Restructuring

Microsoft is cutting approximately 9,000 jobs, accounting for nearly 4% of its global workforce, as part of ongoing efforts to streamline operations and position the company for growth in an AI-driven market. This layoff follows earlier reductions earlier this year and focuses particularly on reducing management layers and customer-facing roles, including significant impacts on Xbox divisions and sales teams. The company aims to increase agility, minimize redundancies, and accelerate its investment in artificial intelligence, with CEO Satya Nadella noting that AI generates 20% to 30% of its code. Despite these cuts, Microsoft remains profitable, having posted significant net income recently, but the layoffs reflect a broader industry trend where major tech firms are restructuring to adapt to AI and automation. Employee uncertainty and stress have increased amid these changes, though affected staff have been offered severance and reassignment options. Microsoft's leadership emphasizes that these organizational changes are necessary to maintain competitiveness in a rapidly evolving marketplace.