Microsoft plans to lay off thousands of employees as soon as next week. The reduction represents less than 2.5% of the company's global workforce. Impacted roles span the consulting, sales, and Xbox gaming divisions.
Management aims to control costs while increasing capital investments in AI infrastructure. This restructuring aligns with the start of Microsoft's fiscal year, a period historically used for workforce adjustments. The move follows a broader tech industry trend of reallocating resources to fund the race for AI dominance.
Microsoft stock rose in pre-market trading following the report. Investors appear to favor these cost-control measures in light of the company's long-term AI strategy.