Microsoft Cuts 4,800 Jobs as AI Investment Costs Continue to Surge

Microsoft has announced the layoff of approximately 4,800 employees, accounting for nearly 2.1% of its global workforce. The company said the decision is part of its strategy to improve operational efficiency while managing the rapidly increasing investments required to strengthen its artificial intelligence infrastructure.

Global spending on artificial intelligence is expected to reach nearly $700 billion this year, placing immense pressure on technology companies to generate stronger returns on investment. Alongside Microsoft, major technology firms such as Amazon and Meta have also reduced their workforce in recent months as they continue to prioritize AI-driven growth and business transformation.