As part of its most recent round of layoffs this year, Microsoft has stated that it would lay off up to 9,000 employees. Although the corporation did not name which divisions will be impacted, sources indicate that its Xbox video gaming segment will be affected.
Microsoft is investing $80 billion (£68.6 billion) on massive datacenters to train AI models as part of its ambitious plans to invest extensively in AI. We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” a firm representative told the BBC.
The layoffs would affect 4% of Microsoft’s 228,000 employees worldwide. To date in 2025, it has announced three further waves of layoffs, including the elimination of 6,000 positions in May. More than 800 of the jobs being cut would be centred in Redmond and Bellevue, another Microsoft headquarters in Washington state, according to a database kept by the state.
Along with its Big Tech peers, Microsoft has recently shifted its focus to the development of artificial intelligence (AI), making investments in processors and data centres.
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