Microsoft has announced it will lay off as many as 9,000 workers in its latest round of global job cuts this year.
The technology giant confirmed that several divisions would be affected, though it did not specify which ones. However, reports suggest that its Xbox video gaming unit will be significantly impacted.
While it’s not yet known how many UK jobs will be lost, Microsoft employs roughly 6,000 people across two UK office locations. The company’s UK headquarters are situated on the River Thames in Reading, and it also has multiple offices in London, including locations in Paddington and Victoria. There used to also be a Microsoft “Experience Centre” on Regent Street, but that was closed earlier this year.
This latest wave of redundancies comes as Microsoft continues to invest heavily in artificial intelligence (AI), spending an estimated $80 billion (£68.6 billion) on large data centres to train AI models.
A spokesperson for the firm told the BBC: “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.” The cuts represent around 4% of Microsoft’s 228,000-strong global workforce.
This marks the fourth round of redundancies initiated by Microsoft so far in 2025, following cuts in May that saw 6,000 roles eliminated. An official database maintained by Washington state indicates that over 800 of the affected positions will be concentrated in Redmond and Bellevue, key Microsoft hubs in its home state.
In recent years, much like other major technology companies, Microsoft has pivoted its business towards developing AI. This includes substantial investments in data centres and advanced chips. Last year, the company appointed British AI pioneer Mustafa Suleyman to lead its new Microsoft AI division.
A top Microsoft executive recently told the BBC that the next half-century will “fundamentally be defined by artificial intelligence,” predicting significant changes in how we work and interact.
Microsoft is also a major investor and shareholder in OpenAI, the company behind the popular chatbot ChatGPT, though their relationship has reportedly become strained in recent months. Bloomberg has suggested that Microsoft has faced challenges in selling its AI assistant, known as Copilot, to business customers, with many office workers reportedly favouring ChatGPT.
These layoffs among rank-and-file workers at Microsoft occur amidst a fierce battle among major US tech companies to secure top AI talent. Meta, the parent company of Facebook and Instagram, has been actively poaching talent from rivals to establish a ‘superintelligence’ lab, with Chief Executive Mark Zuckerberg reportedly personally involved in recruitment efforts. OpenAI boss Sam Altman recently stated that members of his team had been offered “signing bonuses” of more than $100 million (£74.3 million) from Meta.
Last month, Amazon boss Andy Jassy also indicated that he expects AI to replace some roles within his firm.
Image source: Microsoft
