Washington: Microsoft has confirmed that it will cut as many as 9,000 jobs globally, marking the tech giant’s fourth wave of layoffs in 2025.
The move, affecting around 4 percent of its 228,000-strong workforce, comes with a sweeping organisational shift as the company ramps up investments in artificial intelligence (AI). While the company did not identify which divisions would be impacted, reports suggest that the Xbox gaming division will bear part of the brunt. Official filings indicate more than 800 positions are being eliminated in Microsoft’s home state of Washington, particularly in Redmond and Bellevue.
A Microsoft spokesperson stated that, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.”
This latest round follows previous cuts, including 6,000 roles in May. Microsoft has now slashed thousands of jobs in 2025 alone, as it pivots towards AI-driven growth. The company is supporting $80 billion in the development of data centres to train advanced AI models and support its broader ambitions in the space.
Last year, Microsoft brought in British AI pioneer Mustafa Suleyman to lead its newly formed Microsoft AI division. The company is also a major investor in OpenAI, the firm behind ChatGPT, although tensions between the two have reportedly escalated in recent months. Bloomberg reports that Microsoft has encountered challenges in marketing its own AI assistant, Copilot, to business clients, who continue to favour ChatGPT.
Tech rivals have been aggressively poaching AI talent, with Meta offering signing bonuses of over $100 million, according to OpenAI CEO Sam Altman. Meta CEO Mark Zuckerberg is said to be presently involved in building a superintelligence team, while Amazon chief Andy Jassy recently indicated AI would ultimately replace certain roles at his firm.
As AI reshapes the tech industry, Microsoft’s layoffs underscore the ongoing transition, one in which heavy investments in innovation may come at the cost of traditional jobs.
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