"Microsoft to cut about 4% of jobs amid hefty AI bets", July 2, 2025

Microsoft (MSFT.O), will lay off nearly 4% of its workforce,... in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence infrastructure.

The company, which had about 228,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers. It was planning to cut thousands of jobs, particularly in sales, Bloomberg News reported last month.

The Windows maker had pledged $80 billion in capital spending for its fiscal year 2025. However, the soaring cost of scaling its AI infrastructure has weighed on its margins, with its June quarter cloud margin expected to shrink from last year.

Microsoft said... it planned to reduce organizational layers with fewer managers and streamline its products, procedures and roles.

... Separately, Bloomberg News reported Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10% of its staff, or about 200 jobs.

Microsoft confirmed to Reuters that its gaming division was impacted by the layoffs, although not the majority of the unit, but did not provide further details.

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