Microsoft layoffs: Windows maker cuts more jobs

Microsoft has laid off 40 employees in Washington state, adding to the series of job cuts it has made this year. This latest round of layoffs was disclosed in a state filing on Monday, even as the company

continues to report strong financial performance and increase its investments in artificial intelligence, according to Moneycontrol.

Despite these workforce reductions, Microsoft recently announced record-breaking quarterly revenue and profit, driven by strong growth in its cloud and AI businesses. The company has invested $88 billion over the past year to bolster its AI infrastructure and plans to spend an additional $30 billion by September 2025, the report stated.

Microsoft had cut about 9,000 employees, or 4% of its workforce, in the latest round of job cuts. The third round of layoffs happened after 6000 job cuts (3% of its workforce) in May and over 300 sackings just a week earlier.

In a statement, Microsoft said the cuts will affect multiple teams around the world, including its sales division and its Xbox video game business.

“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” the tech giant said in the statement.

Microsoft has been prioritising AI to maintain its lead in the rapidly evolving technology landscape. The company is investing significantly in data centres and AI research to cater to the increasing demand from businesses adopting AI tools and services.

The Bloomberg report had also mentioned that Microsoft has allocated a capital expenditure of around Rs 6.6 lakh crore ($80 billion) for the current financial year. A substantial portion of this budget will be dedicated to expanding data centre infrastructure, aiming to alleviate the strain on existing facilities that support AI services.