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Microsoft has announced a new wave of job cuts, eliminating 4,800 positions, or about 2% of its global workforce. The decision is linked to increased productivity thanks to the increasingly widespread use of artificial intelligence (AI), as well as the company's efforts to reduce costs.
This is the latest round of layoffs at the American company, after Microsoft previously offered severance packages to around 9,000 employees. According to reports, professional platform LinkedIn, owned by Microsoft, is also expected to cut several hundred jobs.
According to data from the Layoffs.fyi platform, American technology companies have eliminated around 120,000 jobs in recent months.
The pressure is particularly great for companies that provide cloud services, such as Microsoft, Google and Amazon Web Services (AWS), which are trying to limit costs while investing record amounts in developing infrastructure for artificial intelligence.
This year alone, Microsoft plans to invest about $190 billion in building and expanding its AI infrastructure.
At the same time, the increase in demand for the construction of data centers has led to a significant increase in microchip prices, also affecting other sectors of the company's activity.
One of the sectors most affected is video games. Microsoft was recently forced to raise prices for its Xbox console, at a time when its sales were already declining.
The new head of the Xbox division, Asha Sharma, has called for a "fresh start" for the business, after profit margins fell to just 3%.
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