The news highlights the efforts of the technology sector to cut costs at a time when it is having to find billions to fund significant investments into AI.
According to Bloomberg more than 300 employees have been informed that their positions had been eliminated. A Microsoft spokesperson said that these layoffs are in addition to the 6,000 job cuts announced in May.
This is the third round of layoffs announced by Microsoft’s in 2025. It unveiled a three percent workforce reduction earlier in May and started cutting staff numbers back in January.
Despite the cutbacks, Microsoft is ramping up its AI investments. Capital expenditure on AI is said to be up 53% reaching $21 billion in the third quarter ending in March and that spending is expected to continue to grow in fiscal 2026.
Microsoft is not alone in investing more while cutting costs. Google reportedly eliminated around 200 positions within its global business organisation as it, like Microsoft, shifts spending priorities toward data centres and AI development.
Last month Amazon began cutting around 100 roles within its devices and services division, while TikTok instructed its US e-commerce staff to work from home while awaiting emails about “difficult decisions.” Which in short means job cuts.
