Microsoft has announced that it will lay off approximately 4,800 employees, representing about 2.1 percent of its workforce, in order to increase investments in AI technology infrastructure.
The layoffs are part of a restructuring process that includes reorganizing certain divisions within the Business and Xbox gaming segments, marking Microsoft's entry into the wave of workforce reductions among major tech companies due to AI.
Amy Coleman, Microsoft's Chief Human Resources Officer, stated in a message to employees that while AI is transforming how work gets done, it is not directly replacing the positions of those being laid off.
She also explained that the company is reallocating resources to align with its priority business areas as job patterns change due to AI.
Additionally, while Microsoft's Azure cloud services division has shown improvements, the company is facing financial pressures due to the high costs of building data centers.
In the gaming division, Xbox is also reconsidering its business model or even considering spinning off as a separate company division due to declining profitability.
Ref: The Strait Times
