Microsoft Just Cut 6,000 Jobs--Here's What It Signals for the Future of AI

Khac Phu Nguyen

Tue, May 13, 2025, 2:08 PM 1 min read

Microsoft (NASDAQ:MSFT) is letting spell of 6,000 employeesabout 3% of its planetary workforcein what looks similar different measurement successful its ongoing interior overhaul. The cuts span departments and countries, including LinkedIn, and are aimed astatine trimming absorption layers and reallocating resources toward what the institution views arsenic higher-growth opportunities. A spokesperson noted this determination is portion of organizational changes indispensable to champion presumption the institution for occurrence successful a dynamic marketplace.

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The timing isn't random. Microsoft's fiscal twelvemonth wraps successful June, a play erstwhile the institution often recalibrates. Over the past period alone, it's shifted income of tiny and mid-sized concern bundle to extracurricular firms and restructured cardinal method teams. At the aforesaid time, the institution is digging heavy into its pocketsabout $80 cardinal this yearto physique retired the information centers powering Azure and its increasing AI infrastructure. These changes suggest Microsoft is realigning astir what it sees arsenic its adjacent chapter: starring the AI-driven endeavor stack.

Microsoft isn't unsocial successful the reshuffle. Meta (NASDAQ:META) is cutting 5% of staff, but plans to refill those seats with caller hires. Salesforce (NYSE:CRM) precocious axed 1,000 roles to marque country for AI talent. As AI takes halfway signifier crossed the industry, this question of restructuring could beryllium little astir shrinkingand much astir recalibrating for what's next.

This nonfiction archetypal appeared connected GuruFocus.