TECHNOLOGY
Tech Giant Cuts Jobs to Boost AI Efforts
USAThu Jul 03 2025
Microsoft is letting go of 9, 000 workers. This is part of a bigger plan to reshape the company. The cuts are happening in different areas and at all levels. Even though the company is making a lot of money, it wants to work more efficiently.
The company says it needs to simplify things. This means fewer managers and more streamlined processes. It's not the first time this year Microsoft has cut jobs. Earlier, 6, 000 people lost their jobs in May. Now, the total is over 15, 000 for the year.
The latest cuts will affect sales, customer service, and the Xbox gaming division. The head of Xbox, Phil Spencer, told his team that some projects will be stopped or scaled back. He also mentioned that management layers will be reduced to make the company more agile.
This move is part of a bigger trend in the tech industry. Many companies are cutting jobs while investing heavily in AI. Microsoft's CEO, Satya Nadella, has said that AI tools now write up to 30% of the company's code. While Microsoft hasn't directly linked the layoffs to AI, the timing suggests a shift towards more automation.
The tech job market is changing. Companies are delivering strong earnings, but they are also reducing their workforce. This shows that the industry is tightening up, even as it grows.
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questions
Could the layoffs be part of a larger plan to monopolize the AI market by eliminating competition through workforce reductions?
How does Microsoft's investment in AI correlate with the current round of layoffs?
How will the reduction in sales and customer-facing roles impact Microsoft's market presence and customer service quality?
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