Microsoft's layoffs reflect a broader tech industry trend, with firms like Deloitte cutting 20,000 jobs in 2025, per X sentiment. The company aims to reinvest savings into AI, targeting a £78 billion ($103 billion) AI market by 2027, but risks alienating talent in a competitive field.

Microsoft layoffs, cuts 6,000 jobs amid industry-wide tech layoffs driven by AI disruption, over-hiring correction, and a shift toward leaner operations, news

Microsoft announced a smaller round of performance-based layoffs in January. But the 3% cuts will be Microsoft’s biggest since early 2023, when the company cut 10,000 workers, almost 5% of its workforce, joining other tech companies that were scaling back their pandemic-era expansions.