onlyTrustedInfo.comonlyTrustedInfo.comonlyTrustedInfo.com
Notification
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Reading: Microsoft to lay off around 3% of workforce in organization-wide cuts
Share
onlyTrustedInfo.comonlyTrustedInfo.com
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Search
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
  • Advertise
  • Advertise
© 2025 OnlyTrustedInfo.com . All Rights Reserved.
Tech

Microsoft to lay off around 3% of workforce in organization-wide cuts

Last updated: May 12, 2025 8:00 pm
Oliver James
Share
3 Min Read
Microsoft to lay off around 3% of workforce in organization-wide cuts
SHARE

By Aditya Soni

(Reuters) – Microsoft said on Tuesday it was laying off less than 3% of its workforce, or around 6,000 employees, as the technology giant looks to rein in costs while funneling billions of dollars into its ambitious bet on artificial intelligence.

The cuts will be across all levels and geographies and are likely the largest since Microsoft laid off 10,000 employees in 2023. The company let a small number of staff go in January over performance-related issues, but the new cuts are not related to that, according to CNBC, which first reported the news.

Big Tech has been spending heavily on AI as they see the new technology as a major growth engine, while slashing costs elsewhere to safeguard profit margins. Google has also laid off hundreds of employees in the past year, as it looks to control costs and prioritize AI, media reports have said.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said on mail.

The company, which had 228,000 workers as of June last year, regularly uses layoffs to prioritize staffing in its main focus areas.

Tuesday’s move comes weeks after Microsoft posted stronger-than-expected growth in its cloud-computing business Azure and blowout results in the latest quarter, calming investor worries in an uncertain economy.

But the cost of scaling its AI infrastructure has weighed on profitability, with Microsoft Cloud margins narrowing to 69% in the March quarter from 72% a year ago.

Microsoft has earmarked $80 billion in capital spending this fiscal year, with most of it aimed at expanding data centers to ease capacity bottlenecks for artificial intelligence services.

D.A. Davidson analyst Gil Luria said the layoffs showed Microsoft was “very closely” managing the margin pressure created by its heightened AI investments.

“We believe that every year Microsoft invests at the current levels, it would need to reduce headcount by at least 10,000 in order to make up for the higher depreciation levels due to their capital expenditures,” he said.

(Reporting by Aditya Soni and Akash Sriram in Bengaluru; Editing by Shinjini Ganguli, Anil D’Silva and Devika Syamnath)

You Might Also Like

Apple, Meta fined as EU presses ahead with tech probes

Long-running EU antitrust case of Microsoft Teams appears to be nearing an end

Scientists finally solve thirty-year-old black hole mystery

One Tech Tip: These are the apps that can now avoid Apple’s in-app payment system

Logitech announces Final Cut Pro support for MX Creative Console

Share This Article
Facebook X Copy Link Print
Share
Previous Article Heidi Klum Goes Topless in a Pair of Form-Fitting Denim Overalls Heidi Klum Goes Topless in a Pair of Form-Fitting Denim Overalls
Next Article Trump says he’s still open to attending talks on Ukraine, unsure about Putin Trump says he’s still open to attending talks on Ukraine, unsure about Putin

Latest News

Jensen Huang dismisses Anthropic CEO’s claim that AI will eliminate jobs: ‘He thinks AI is so scary, but only they should do it’
Jensen Huang dismisses Anthropic CEO’s claim that AI will eliminate jobs: ‘He thinks AI is so scary, but only they should do it’
Tech June 10, 2025
Photos show accuser in NYC crypto kidnapping leaving house freely, defense lawyers say
Photos show accuser in NYC crypto kidnapping leaving house freely, defense lawyers say
Tech June 10, 2025
Bayesian yacht that sank off Sicily killing 7 to be raised in late June under updated recovery plan
Bayesian yacht that sank off Sicily killing 7 to be raised in late June under updated recovery plan
Tech June 10, 2025
Augmented reality can show local residents future building plans in real time — and Tampa Bay wants in
Augmented reality can show local residents future building plans in real time — and Tampa Bay wants in
Tech June 10, 2025
//
  • About Us
  • Contact US
  • Privacy Policy
onlyTrustedInfo.comonlyTrustedInfo.com
© 2025 OnlyTrustedInfo.com . All Rights Reserved.