Microsoft Layoffs Affect 7% of Workforce Amid AI Shift

Microsoft has laid off over 15,000 employees in 2025, amounting to about 7% of its workforce, despite record profits and $75 billion in net income over three fiscal quarters. CEO Satya Nadella described the move as the 'enigma of success,' linking the cuts to an $80 billion investment in AI infrastructure and the drive to remain competitive. Microsoft is shifting its focus from traditional software to becoming an 'intelligence engine' centered on artificial intelligence. While layoffs are intended to realign business priorities and control operating costs, the company continues hiring in key AI roles. The decision has raised internal concerns about company culture and the emphasis on investor confidence over job security. Employee reactions to Nadella's memo have been mixed, reflecting both understanding and frustration.