Microsoft began laying off about 6,000 workers Tuesday, nearly 3% of its entire workforce and its largest job cuts in more than two years as the company spends heavily on artificial intelligence.

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 is cutting roughly 3% of its global workforce as the company shifts more resources toward the race to develop advanced artificial intelligence, the company confirmed on Tuesday.

Microsoft says the cuts will hit all levels, teams, and locations with a focus on reducing the number of managers.

Layoffs are increasing stress and anxiety. Job loss impacts mental health. It affects families and relationships. People need support and understandin

Microsoft began laying off nearly 3% of its entire workforce Tuesday, its largest mass layoff in more than two years.

Microsoft, which is cutting 3% of its headcount, had 228,000 employees as of last June. The maker of Windows and Word is aiming to reduce management layers. Microsoft on Tuesday said that it's laying off 3% of employees across all levels and geographies.

OpenAI is currently in “a tough negotiation” with one of its biggest investors and partners, Microsoft, according to the Financial Times. The AI startup