Microsoft to lay off 6,000 employees in new wave of restructuring
Microsoft committed $80 billion in capital spending for fiscal year 2025, but rising costs to expand its AI infrastructure have put pressure on its profit margins.;

Microsoft announced on Wednesday that it will lay off nearly 4 percent of its workforce as part of efforts to control costs amid heavy spending on artificial intelligence infrastructure. The company, which employs around 228,000 people globally as of June 2024, had already announced layoffs in May affecting about 6,000 workers, with more cuts planned, especially in sales roles, according to Bloomberg News.
Despite pledging $80 billion in capital spending for its fiscal year 2025, Microsoft’s margins have been squeezed due to the high costs of scaling its AI infrastructure. The company expects its cloud margin for the June quarter to shrink compared to last year.
Microsoft said it plans to reduce management layers, streamline its products and processes, and cut down on roles to become more efficient.
The Seattle Times broke the news of these layoffs earlier Wednesday. Separately, Bloomberg reported that Microsoft’s Barcelona-based King division, known for the Candy Crush game, is cutting about 10 percent of its staff—roughly 200 jobs.
Other big tech companies investing heavily in AI have also announced layoffs. Meta, Facebook’s parent company, said earlier this year it would trim about 5 percent of its lowest-performing employees. Google’s parent company, Alphabet, has laid off hundreds over the past year, and Amazon has made cuts in several business areas, including its books division, devices and services, and communications teams.
Wider economic uncertainty and rising costs are driving layoffs across Corporate America, as companies look to streamline operations and prepare for ongoing financial pressures.