Microsoft joins AI-driven tech layoff wave with 4,800 job cuts - Reuters

Microsoft announced it is cutting approximately 2.1% of its workforce, equating to about 4,800 jobs, as part of a restructuring of its commercial and Xbox businesses. The company stated it is shifting investments toward AI infrastructure. Chief People Officer Amy Coleman noted that AI is changing how work gets done by automating routine tasks.

The layoffs affect both the commercial and Xbox divisions. The current cuts represent a further reduction in headcount as the company reallocates resources.

These job reductions come amid a broader trend of technology companies announcing layoffs tied to AI adoption. The term "AI-driven layoff wave" has been used to describe similar moves by other firms. Microsoft's decision follows patterns seen across the sector, where companies are restructuring to emphasize AI development and infrastructure investments.