tech

Microsoft plans thousands of job cuts, impacting less than 2.5% of workforce

Microsoft is planning job cuts that are expected to affect areas such as sales, consulting, and Xbox as it ramps up AI spending.

Microsoft plans thousands of job cuts, impacting less than 2.5% of workforce

TL;DR

  • Microsoft plans to announce job cuts impacting thousands of roles soon.
  • Affected areas include sales, consulting, and the Xbox gaming division.
  • The layoffs are expected to be less than 2.5% of Microsoft's 220,000-person workforce.
  • The company is increasing spending on artificial intelligence (AI).
  • A voluntary retirement program earlier this year allowed about one-third of eligible US employees to take buyouts.
  • Xbox layoffs were foreshadowed by new CEO Asha Sharma's call for a 'reset'.