Microsoft plans job reductions as it shifts toward AI and cloud services

Microsoft is reportedly preparing to cut thousands of jobs next week, with the reductions affecting less than 2.5% of its 220,000 employees, or fewer than 5,500 roles. The New York Post said the layoffs are expected to hit sales, consulting and Xbox units as the company continues shifting resources toward AI and cloud services. The move reflects a broader pattern among large technology companies as they redirect spending to higher-growth areas tied to computing infrastructure and artificial intelligence, while also seeking to protect margins. The report also highlights rising concern over AI spending, including roughly $190 billion pledged for new infrastructure over the coming years, even as workforce reductions can create risks such as lost institutional knowledge and weaker client relationships.