Microsoft to Cut ~4,800 Jobs to Accelerate AI Investment

VoM News Desk | July 7, 2026 | 12:16 AM IST | Breaking News, Business, World | Follow on Google News

Microsoft to Cut ~4,800 Jobs to Accelerate AI Investment

WASHINGTON, July 6 [VoM News]: Microsoft will eliminate approximately 4,800 jobs, or roughly 2.1% of its total global workforce, as the tech behemoth ramp up its investment in artificial intelligence (AI) infrastructure and strive for more efficiency in its operations.

The cuts represent part of a broader shift occurring in the technology sector, where many leading corporations like Amazon and Meta have made layoffs as they bolster their AI expenditure and contend with escalating costs.

This latest round of job reductions follows a tough initial half for Microsoft in 2026, where its stock experienced a drop of approximately 23%. Early this year, Microsoft also implemented voluntary buyouts for about 9,000 of its employees in the U.S.

The company is expanding its artificial intelligence prowess in response to strong demand for its Azure cloud service; however, the increasing expense of data centre development and AI deployment has placed financial pressure on Microsoft. The tech titan estimates capital expenditures of about $190 billion in 2026, far exceeding analyst expectations.

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Meanwhile, automation in Microsoft’s software division is shifting its structure with higher prices of memory chips and costlier Xbox consoles.

Microsoft’s upcoming quarterly report, due out later this month, is anticipated to demonstrate whether AI initiatives are driving sustained growth.

VoM News Desk

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