Microsoft is laying off as many as 9,000 employees

Microsoft is laying off thousands of employees, its third round of cuts in recent months, the company confirmed on Wednesday.

The staff reduction will affect less than 4% of the company’s total workforce, or around 9,000 workers, according to a company spokesperson. It marks the tech giant’s largest layoffs since it cut 10,000 employees in 2023 and comes amid workforce cuts elsewhere in the tech industry.

"We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace," a Microsoft spokesperson said in a statement, adding that the company is reducing managerial layers and making employees more productive with new technologies.

The staff reduction also comes as tech companies, including Microsoft, are using artificial intelligence to make their workforce more efficient. Microsoft CEO Satya Nadella said earlier this year that 20% to 30% of the company's code was being generated by AI, and the company is pouring billions into AI infrastructure investments.

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