Microsoft is cutting up to 9,000 jobs in its latest layoffs this year. That’s about 4% of its 228,000 global workforce.
The company didn’t specify which divisions will be hit, but reports point to its Xbox gaming unit taking a major blow.
This follows three other rounds of cuts in 2025, including a 6,000-person layoff in May. 
More than 800 of the job cuts will happen in Microsoft’s hubs in Redmond and Bellevue, Washington, according to a state database.
Meanwhile, Microsoft is doubling down on AI. It’s spending $80 billion on massive datacenters to train AI models and hired AI pioneer Mustafa Suleyman last year to lead its new AI division.
A senior Microsoft exec told the BBC the next 50 years will be “fundamentally defined by artificial intelligence,” reshaping work and interaction.
Microsoft also remains a major investor and shareholder in OpenAI, the maker of ChatGPT — though their relationship has reportedly grown tense recently.
A Microsoft spokesperson told the BBC:
We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.
