Microsoft job reductions to be under 2.5% of workforce: Business Insider

Microsoft has announced that its upcoming round of job reductions will affect less than 2.5% of its global workforce, according to a report by Business Insider. This figure marks a significant decrease compared to earlier rounds of layoffs, which impacted approximately 3% of employees, or roughly 6,000 workers. The company has not specified whether the cuts will be voluntary or involuntary, but previous reductions included voluntary retirement packages, particularly for long-tenured employees.

The decision comes amid Microsoft’s continued investment in artificial intelligence (AI), with the company planning to spend $110-$120 billion on AI infrastructure in the current fiscal year. CEO Satya Nadella has emphasized the transformative potential of AI, stating that it has already contributed to productivity gains within the company, including handling 30% of internal coding tasks.

Despite the job reductions, Microsoft has maintained strong financial performance, with net income reaching $75 billion over the past three fiscal quarters. The company has also seen its stock price rise 21% in 2026, hitting record highs earlier in July. Nadella acknowledged the apparent contradiction between layoffs and financial success in a recent internal memo, calling it the “enigma of success” in an industry that has no franchise value.

The latest round of cuts is part of a broader trend in the tech industry, with companies such as Meta and Amazon also implementing significant workforce reductions as they shift resources toward AI development. While Microsoft has historically been known for its relatively stable employment practices, recent layoffs have raised concerns among employees about job security, particularly in white-collar roles.