Microsoft announced Wednesday (July 2) it will lay off about 9,000 employees, marking its largest workforce reduction since 2023 as the company accelerates its shift toward artificial intelligence.
The company did not explicitly link the cuts to AI replacing workers, but the timing and focus suggest a move toward a leaner, more automated organization. CEO Satya Nadella recently said about 30% of the company’s code is now generated by AI tools.
The layoffs come as tech firms continue to reduce headcount even while reporting strong financial performance. Microsoft cited the need to streamline management layers, simplify products, processes and roles.
More than 15,000 Microsoft employees have been laid off so far in 2025.
