Microsoft announced the cuts on July 6, following a nearly 23% slump in its shares in the first six months of 2026, its worst first-half performance since 2022
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Microsoft is cutting approximately 4,800 jobs, representing 2.1% of its workforce. This move follows a wave of tech layoffs and significant AI infrastructure spending. The company faces pressure to demonstrate returns from its substantial AI investments. Microsoft's Azure cloud business sees growth, but data center costs are impacting cash flows. The gaming division is undergoing a restructuring due to declining profit margins.
