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Microsoft cuts about 4,800 jobs worldwide

July 07, 2026 | 12:35 |2586
Source: orient.tm

The technology sector never stands still — it transforms faster than any other industry. What seemed unshakeable yesterday requires revision today. Layoffs at the largest corporations are not just numbers in reports but a reflection of tectonic shifts: artificial intelligence is changing the rules of the game, and even giants are forced to adapt to the new landscape, sacrificing familiar structures for survival and future growth.

On Monday, US tech giant Microsoft announced it would cut about 4,800 jobs worldwide, roughly 2.1% of its total workforce. The company confirmed the layoffs in an internal memo to employees, stating that the move was driven by the need to adapt the business to rapid changes in the technology sector and to streamline operations. The cuts will primarily affect the commercial sales division and the Xbox gaming business.

Amy Coleman, executive vice president and chief people officer at Microsoft, said in the memo that the company's business is evolving amid rapid technological shifts and customer demand, and the organisation must adapt accordingly. She stressed that the layoffs are not a direct result of replacing workers with artificial intelligence.

Microsoft said it would provide affected employees with severance packages, health insurance and job transition assistance. The company also noted that a voluntary retirement programme introduced earlier this year helped reduce the scale of the layoffs. According to its annual report, as of June 2025, Microsoft had about 228,000 full time employees worldwide.

The latest reduction comes as major tech companies continue to pour investment into AI, seeking to control costs and boost efficiency. Microsoft, like other giants, is reallocating resources to promising areas, which inevitably entails restructuring its workforce.

As CCTV+ reports. Analysts note that such moves are becoming the new normal in an industry where bets on innovation demand constant optimisation.

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