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BBC News
3 hours ago
- BBC News
Microsoft to cut up to 9,000 jobs as it invests in AI
Microsoft has confirmed that it will lay-off as many as 9,000 workers, in the tech giant's latest wave of job cuts this company said several divisions would be affected without specifying which ones but reports suggest that its Xbox video gaming unit will be hit. Microsoft has set out plans to invest heavily in artificial intelligence (AI), and is spending $80bn (£68.6bn) in huge datacenters to train AI modelsA spokesperson for the firm told the BBC: "We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace." The cuts would equate to 4% of Microsoft's 228,000 global has initiated three other rounds of redundancies so far in 2025, including in May when it said it would axe 6,000 roles.A database maintained by the Washington state shows more than 800 of the positions eliminated will be concentrated in Redmond as well as in Bellevue, another hub that Microsoft maintains in its home recent years, along with its counterparts in Big Tech, Microsoft has pivoted its attention towards the develop of AI, including investing in datacentres and year, the firm hired British AI pioneer Mustafa Suleyman to lead its new Microsoft AI division.A top Microsoft executive recently told the BBC that the next half century will "fundamentally be defined by artificial intelligence," changing the way we work and interact with one another. Microsoft is also a major investor and shareholder in OpenAI, the company behind the popular chatbot ChatGPT, although the relationship has reportedly grown tense in recent months. Sign up for our Tech Decoded newsletter to follow the world's top tech stories and trends. Outside the UK? Sign up here.
The Independent
11 hours ago
- The Independent
Microsoft announces another mass layoff, thousands of workers affected
Microsoft is firing thousands of workers, its second mass layoff in months. The tech giant began sending out layoff notices Wednesday. The company declined to say how many people would be laid off but said that it will comprise less than 4% of the workforce it had a year ago. Microsoft said the cuts will affect multiple teams around the world, including its sales division and its Xbox video game business. 'We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,' it said in a statement. Microsoft employed 228,000 full-time workers as of last June, the last time it reported its annual headcount. The company said Wednesday that its latest layoffs would cut close to 4% of that workforce, which would be about 9,000 people. But it has already had at least three layoffs this year. Until now, the biggest was in May, when Microsoft began laying off about 6,000 workers, nearly 3% of its global workforce and its largest job cuts in more than two years as the company spent heavily on artificial intelligence. Microsoft also cut another 300 workers based out of its Redmond, Washington headquarters in June, on top of nearly 2,000 who lost their jobs in the Puget Sound region in May, according to notices it sent to Washington state employment officials. The layoffs announced in May were heavily focused on people in software engineering and product management roles, according to lists the company sent to employment agencies in Washington and California — where the cuts also hit Microsoft offices in the San Francisco Bay Area. Microsoft's chief financial officer Amy Hood said on an April earnings call that the company was focused on 'building high-performing teams and increasing our agility by reducing layers with fewer managers.' The company has repeatedly characterized its recent layoffs as part of a push to trim management layers, but the May focus on software engineering jobs has fueled worries about how the company's own AI code-writing products could reduce the number of people need for programming jobs. Microsoft CEO Satya Nadella said earlier this year that 'maybe 20, 30% of the code' for some of Microsoft's coding projects 'are probably all written by software.'
Telegraph
11 hours ago
- Telegraph
Microsoft to cut 9,000 jobs as chatbots take over
Microsoft is cutting 9,000 jobs as executives order staff to delegate more work to artificial intelligence (AI). The $3.6 trillion (£2.7 trillion) technology giant will shed 4pc of its workforce, it confirmed on Wednesday, with redundancies hitting divisions including its Xbox arm and King, its mobile games studios. The job losses follow a round of cutbacks in May, when Microsoft laid off 6,000 staff including hundreds of middle-managers and engineering roles. The technology business had more than 228,000 employees at the end of its last fiscal year. 'We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,' a Microsoft spokesman said. The cuts come after Satya Nadella, Microsoft's chief executive, claimed that up to 30pc of the company's code was now being written by AI bots. Executives have been pushing staff to adopt more AI tools to speed up their work. Julia Liuson, the president of Microsoft's developer division, recently told managers to consider whether an employee was using AI enough as part of their performance reviews, according to Business Insider. 'Using AI is no longer optional,' she said in an email. 'It's core to every role and every level. AI should be part of your holistic reflections on an individual's performance and impact.' Threat to entry-level jobs The job cuts come amid growing fears that entry-level and engineering roles risk being replaced by AI bots. Tools such as ChatGPT can write emails or reports in plain English, generate code or create graphics and pictures. While tech executives have promised AI will help create more jobs than it destroys, there are already signs that some roles are disappearing from the jobs market. Software vacancies have fallen sharply since ChatGPT was released in November 2022. Executives are increasingly demanding programmers augment their roles with AI bots that can generate code themselves.
