Microsoft cuts 7,000 jobs to prioritize AI investments. Layoffs impact LinkedIn, Xbox, and global offices as company streamlines operations.

The layoffs, which will affect almost 2,000 workers in Washington state, are meant in part to strip away layers of management and create more nimble teams.

Microsoft introduced the Copilot+ PC concept and the first Surface Copilot+ PCs. Reality, however, didn’t live up to those expectations.

Although Microsoft did not name Artificial Intelligence (AI) as a cause of the axing, it undoubtedly has had a role to play. Once AI is implemented within operations, IT firms — both services and products — will get flatter.

In what is considered Microsoft' s largest round of layoffs since 2023, the company decided to fire 6,000 employees, which makes up about 3% of its workforce. A director of AI who has been impacted has taken to X to share about the “bittersweet news”. In her post, she recalled that the employees who were fired were “asked to stop work immediately”.

The move follows a smaller round of performance-based layoffs in January and marks a shift from the aggressive hiring of the pandemic years.

Microsoft Research continues to collaborate with the global research community to drive breakthroughs in AI and push boundaries of what’s possible to extend human capability, create value, and deliver broad societal benefit.

Communication tool provider Twilio Inc. today announced updates at its annual SIGNAL 2025 conference, including a next-generation customer engagement platform built for an artificial intelligence and data-driven future, along with a new strategic partnership with Microsoft Corp. to advance conversational AI.

Microsoft's AI Skills Fest offers free AI lessons for beginners and pros, as well as prizes to win and discounts to check out. Register now for free access through May 28th.

SAS and Microsoft expand their AI partnership, launching decision-making tools and previewing quantum AI’s potential at SAS Innovate 2025.

Microsoft showcases custom AI tools to cut costs and boost productivity. Here's what else happened in business tech that could affect your company.