New Delhi. Tech giant Microsoft will once again layoff employees. According to a Bloomberg report, a large number of employees will be fired from the Xbox division and global sales teams. This will be the fourth major layoff in the Xbox division within 18 months. The company is increasing investment in artificial intelligence.
The company is reducing its workforce due to AI. Microsoft will announce layoffs in early July. Microsoft follows a financial year from July 1 to June 30. According to the data of June 2024, the company had 2.28 lakh full time employees. Of these, 55 percent were working in America.
There is constant pressure on Microsoft to cut expenses and increase profits. This pressure has increased since the company bought Activision Blizzard for $69 billion in the year 2023. Microsoft had earlier laid off about 6,000 employees in May 2025. In early June, news came that the company had laid off more than 300 employees.
In April itself, Microsoft had indicated that it would outsource software sales to small and medium businesses (SMBs) to third party vendors. Due to this, many internal positions of the company have now become redundant, which has further increased the need for layoffs.
The company is increasing investment in AI
Microsoft is increasing investment in AI. Many companies across various industries are accelerating the integration of AI into their products and services. Companies are now prioritizing AI-related jobs and using technology to save money. Microsoft has planned capital expenditure of $80 billion this fiscal year, most of which is aimed at expanding data centers to ease capacity constraints for AI services.
