Microsoft announces plan to lay off 6,000 staff, 3% of its global workforce  

Thousands of workers from all levels, teams, and regions will be impacted by Microsoft’s announcement on Tuesday that it will lay off 3% of its global staff.

The AI-focused tech behemoth did not reveal the precise number of job losses, but according to US media estimates, it will be roughly 6,000 individuals.

Microsoft says it is making these changes to control expenses while investing extensively in artificial intelligence, with plans to spend up to $80 billion in the fiscal year 2025 on related efforts, despite outstanding financial performance, including a recent quarterly net increase of $25.8 billion. 

READ ALSO: OpenAI in talks with Microsoft to pave way for future initial public offering  

The move comes weeks after the company halted plans to expand its cloud computing infrastructure in a move that comes amid concerns over rising costs, regulatory challenges, and infrastructure constraints such as energy shortages.

Per a report by Bloomberg, Microsoft has halted talks for or delayed development sites of data centers in the U.K., Australia, North Dakota, Wisconsin, and Illinois.

Microsoft plans years in advance, according to a spokeswoman who told the publication that the modifications show “the flexibility of [its] strategy.”

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