Microsoft to cut 4,800 jobs globally in latest round of layoffs
Microsoft is the latest tech giant to cut jobs as historic investment in AI adds further pressure to show returns from the technology
Microsoft has announced it will cut around 4,800 roles in its latest round of global layoffs, attributing the job losses to shifting customer needs and resource adjustment.
A note written by chief people officer and European vice president Amy Coleman said the cuts would impact about 2.1% of its global workforce, which comprises more than 240,000 people.
Microsoft did not confirm how many Irish roles would be impacted by the decision.
Microsoft is the latest tech giant to cut jobs as historic investment in AI adds further pressure to show returns from the technology and offset the rising cost of adopting across their business.
Ms Coleman said that the eliminated roles "are not being replaced with AI," but added: "At the same time, what is true is that AI is changing how work gets done. Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves."
In accounts filed with the Company Registrations Office (CRO) in April, Microsoft said it expected AI technology and services to be "a highly competitive and rapidly evolving market."
"We will bear significant development and operational costs to build and support the AI models, services, platforms, and infrastructure necessary to meet the needs of our customers. To compete effectively, we must also be responsive to technological change, new and potential regulatory developments, and public scrutiny."
Microsoft Corporation employs 6,654 people across Ireland, according to a filing by the company under new European Union disclosure rules. This includes several subsidiaries such as LinkedIn and Activision Blizzard.
Microsoft announced the cuts on Monday following a rough stretch, with its shares falling nearly 23% in the first six months of 2026, their worst first-half performance in four years.
At the beginning of 2026, the software giant offered voluntary buyouts to about 7% of its US workforce, or about 9,000 employees. Microsoft often trims jobs near the end of its fiscal year in June as it sets spending plans for the new year.
Booming AI demand has powered growth at Microsoft's Azure cloud-computing business, which was the exclusive seller of OpenAI's models until April, but the mounting cost of building data centres to run those services is squeezing its cash flows. Microsoft operates data centres at Grange Castle in Dublin, employing around 400 people, with plans for another data centre in Kildare.
The company, which is expected to report results later this month, forecasted quarterly Azure sales in April above Wall Street estimates, but also issued a $190bn spending projection for 2026 that massively surpassed expectations.
AI tools that can increasingly automate routine business tasks have also emerged as a threat to its lucrative software business, while a surge in memory chip prices driven by data center demand has forced Microsoft to raise Xbox console prices at a time when demand for the console was already soft.
The company is considering options for the Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary, the Information reported last month.
The Department of Enterprise has been contacted for comment.
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