AI is taking over jobs and is adding to joblessness globally. Employers in big corporations, businesses and industries are now looking for people having skills in the use of AI software. Using different AI tools, one person can perhaps be employed to perform two to three different types of roles in an organization hence cutting down the employers cost for hiring more people. Similarly, many jobs earlier performed only by skilled professionals, e.g. content writers, video editors, researchers, etc. are now being replaced with AI software.
Microsoft has also, like many other corporations, announced plans to lay off up to 9,000 employees in its latest round of job cuts this year, representing approximately 4% of its global workforce of 228,000. While the tech giant did not specify which departments will be affected, reports indicate that its Xbox gaming division is among those impacted.
The layoffs are part of Microsoft’s broader strategy to shift focus toward artificial intelligence (AI). The company is investing $80 billion (£68.6bn) in data centers to support the development and training of AI models.
This would mark the fourth round of layoffs at Microsoft in 2025. In May, the company cut 6,000 jobs. State records in Washington show that over 800 of the most recent cuts will affect workers in Redmond and Bellevue, two major Microsoft hubs.
Strategic Refocus on AI
In recent years, Microsoft — like many other major tech firms — has been pivoting toward AI. The company has made substantial investments in infrastructure, including chips and data centers, and last year hired British AI expert Mustafa Suleyman to lead its new AI division.
A Microsoft executive recently stated that AI would be the defining force for the next 50 years, transforming how we work and connect with others.
Microsoft is a key investor in OpenAI, the maker of ChatGPT, though reports suggest the partnership has become strained. According to Bloomberg, Microsoft’s Copilot AI assistant has struggled to gain traction with business users, many of whom prefer ChatGPT.
As Microsoft trims its general workforce, top AI talent remains in high demand. Rival tech giants like Meta have aggressively recruited AI experts, with CEO Mark Zuckerberg reportedly leading the charge. OpenAI CEO Sam Altman revealed that some of his team members have been offered over $100 million as signing bonuses from competitors like Meta.
Amazon CEO Andy Jassy has also acknowledged that AI advancements could lead to workforce reductions within his company.
