IS A.I Behind 9,000 Latest Microsoft Job Cuts? They Say No, But..

It seems almost every few weeks, we hear of more job cuts at Microsoft, now the tech giant has announced another 9,000 layoffs corporate-wide.

830 cuts expected in the Puget Sound tech corridor

Geekwire and the WA State Employment Security Department say the cuts will be done in WA by August 31st.

The cuts amount to 4 percent of the company's global workforce, and are not just in the gaming departments or sales, as previously reported. They are reportedly part of the company's ongoing streamlining and efficiency efforts.

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As to the role that AI is playing in the cuts, Geekwire reported:

"Microsoft again declined to directly link the reductions to artificial intelligence. But earlier reports indicated that software engineers bore the brunt of the previous cuts — a pattern that coincides with the company’s heavy investments in AI tools that automate coding tasks."

These cuts are considered 'normal' as Microsoft has hit the close of its corporate year, June 30th, but Geekwire says it's unusual to see several rounds of layoffs so close together.

A Microsoft statement about the cuts read in part:

(they are making) “organizational changes necessary to best position the company and teams for success in a dynamic marketplace.”

But while these cuts are happening, Microsoft has been spending near-record amounts of money, nearly $80 billion, to increase its data centers and cloud infrastructure to meet what's called AI demand.

Overall tech industry cuts are on the rise, up 27 percent over last year. Geekwire says 76.214 tech jobs have gone away in 2025.