Microsoft is cutting 9,000 jobs globally, nearly 4% of its workforce, as part of a major restructuring announced at the start of its 2026 fiscal year. This reduction, the largest since October 2023, targets management layers across various teams and countries. The layoffs come amid Microsoft’s massive $80 billion investment in AI infrastructure for fiscal year 2025, reflecting the challenge of balancing rapid AI growth with cost management. The gaming division, including King—the developer of Candy Crush—is also affected, cutting about 10% of its staff to focus on strategic priorities and improve agility.
These workforce changes align with broader tech industry trends, as companies like Meta, Google, and Amazon also reduce headcount while investing heavily in AI. Experts warn AI could eliminate a significant portion of entry-level white-collar jobs in the next few years, particularly in technology, finance, law, and consulting. However, some leaders like Salesforce UK & Ireland CEO Zahra Bahrololoumi see AI as a tool to augment human productivity and create new roles, such as prompt engineers and AI collaborators, rather than cause widespread job losses.