Microsoft Corporation, the tech giant with a global workforce of 228,000, will lay off as many as 9,000 employees as part of its ongoing transition towards artificial intelligence development. This decision trims nearly 4% from the overall workforce. It follows a period of sanguine layoffs this year, including cutting 6,000 jobs in May.
It noted that the latest round of cuts would largely fall on the company’s headquarters in Redmond and Bellevue, Washington. According to reports, over 800 jobs will be cut in Redmond, WA alone. This strategic move comes as Microsoft aims to streamline operations and allocate resources towards its burgeoning AI division, which has recently been bolstered by the hiring of British AI pioneer Mustafa Suleyman to lead the new team.
Microsoft’s laser-focus on becoming a leader in generative AI is perhaps most apparent with its multi-billion dollar investments in data centers and technology infrastructure. The firm knows that remaining the smartest, nimblest firm in an evolving competition landscape is key. Its focus on AI is a big departure from the agency’s strategic approach to operations.
“This is part of our ongoing effort to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” stated a Microsoft spokesperson.
This is not an isolated incident The current layoffs mark Microsoft’s fourth wave of redundancies in 2025. Microsoft has now begun at least three other rounds of layoffs before this announcement. These changes reflect the company’s efforts to adapt to the rapidly changing tech landscape while prioritizing the development of new technologies.
While Microsoft continues to pivot to address these challenges head on, the company is eager to double down on its strengths in generative AI and technology innovation. The recruitment of Suleyman highlights Microsoft’s intention to lead in this sector and reinforces its commitment to investing in forward-looking solutions.