**Microsoft Unveils Another Round of Job Cuts Potentially Impacting Up to 9,000 Staff as the Tech Titan Prioritizes AI Advancement**
Microsoft has revealed intentions to reduce its workforce by up to 9,000 employees, accounting for approximately 4% of its total global workforce of 228,000 individuals, as part of its most recent restructuring initiative for the year, according to a report by the BBC. While the specific divisions facing cuts have not been detailed, insiders indicate that the Xbox gaming division is likely to be among those affected.
**Major Investments in Artificial Intelligence**
These layoffs occur against the backdrop of Microsoft’s substantial investments in artificial intelligence (AI), including the construction of data centers valued at $80 billion for the purpose of training AI models. A spokesperson for the company told the BBC that it is making essential adjustments to enhance its positioning in a rapidly evolving market. Projects experiencing budget cuts include the reboot of the “Perfect Dark” shooter series and the “Everwild” project.
**ZeniMax Studio Head to Depart in July**
“The Initiative” studio, tasked with the “Perfect Dark” reboot, is set to shut down, while additional Microsoft studios such as Turn 10 (creators of Forza Motorsport) and ZeniMax Online Studios (responsible for Elder Scrolls Online) are also facing workforce reductions. Matt Firor, director of ZeniMax Studio, announced he will leave the company in July after 18 years. Additionally, John Romero, co-founder of indie studio Romero Games Ltd, confirmed layoffs due to funding setbacks for a game.
**Where Will Most Job Cuts Occur?**
This marks Microsoft’s fourth layoff announcement of 2025, following a previous reduction of 6,000 employees in May. The majority of job losses are expected in Microsoft’s offices located in Redmond and Bellevue, Washington. In recent times, Microsoft has redirected its focus towards AI, recruiting specialists like Mustafa Suleyman to head its AI division. The company is also a significant backer of OpenAI, the organization behind ChatGPT, although the dynamics between the two have recently become strained.
