Microsoft is cutting 4% of jobs to reduce costs, impacting AI investments and cloud margins

From Yahoo Finance: 2025-07-02 09:02:00

Microsoft is set to cut nearly 4% of its workforce as the tech giant aims to reduce costs amidst investments in AI infrastructure. The company previously announced layoffs affecting 6,000 workers and plans to streamline operations. Other Big Tech companies, like Meta and Google, have also implemented job cuts in recent months.

The Windows maker had about 228,000 employees globally as of June 2024 and had committed $80 billion in capital spending for fiscal year 2025. However, the cost of expanding its AI infrastructure has impacted its margins, with cloud margins expected to decrease in the June quarter.

Microsoft’s Barcelona-based King division, known for Candy Crush, is cutting 10% of its staff, around 200 jobs. The gaming division was affected by the layoffs, but details were not provided. Economic uncertainties have led to job cuts across various sectors in Corporate America as companies seek to streamline operations and manage costs.



Read more at Yahoo Finance: Microsoft to cut about 4% of jobs amid hefty AI bets