Microsoft has announced plans to lay off approximately 4,800 employees, representing about 2.1 percent of its global workforce. The decision, reported by NDTV on July 6, 2026, is part of an ongoing restructuring aimed at improving efficiency and expanding investment in artificial intelligence (AI) technologies. The company is channeling significant funds into AI infrastructure and rapidly integrating AI across its business operations.

The move comes as global technology firms face intense competition in AI-related investments, which are expected to exceed 700 billion dollars this year. Companies such as Amazon and Meta have also implemented large-scale layoffs to manage rising costs and maintain profitability. Microsoft’s decision follows a 23 percent decline in its share price during the first half of 2026, marking its weakest performance since 2022.

Earlier in the year, Microsoft offered voluntary exit options to about 9,000 U.S.-based employees, roughly 7 percent of its workforce. Despite growth in its cloud computing business, the company faces financial pressure from heavy spending on data centers required to support AI services and rising memory chip prices.