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Microsoft said it will let go of about 9000 employees just under 4 percent of everyone who works there after July 2. Its the company’s biggest round of job cuts since 2023. People in many different teams countries and job levels will be affected. Reportedly Microsoft is still making plenty of money. Last quarter its profit jumped 18 percent to USD 25.8 billion. Even so company leaders say the organization has become too bulky. They want fewer layers of management and simpler ways of working so they can move faster as technology keeps changing. “We’re making these changes so our teams can succeed in a fast‑moving market” the company said. Part of a larger shake‑up Including these latest cuts Microsoft has eliminated more than 15000 jobs this year; about 6000 positions were trimmed in May. The newest layoffs will hit sales and customer‑support roles and will also touch the Xbox gaming group. Xbox boss Phil Spencer told his staff that some projects will be scaled back or stopped and that Microsoft is flattening its management structure to boost speed and efficiency. What this means for the Tech Industry Microsoft’s job cuts are part of a bigger trend happening across the tech world. Many large tech companies are also laying off workers even though they’re still making good money. The reason? Most are now focusing heavily on artificial intelligence (AI). Microsoft has already invested billions in building AI tools and systems. CEO Satya Nadella recently said that AI is now writing nearly 30% of the company’s code. While Microsoft hasn’t said that AI is replacing human jobs the timing of the layoffs and the company’s increasing focus on automation hint at that possibility. These layoffs show that tech jobs are becoming harder to hold onto even at successful companies. Firms like Microsoft are reshaping their teams to be smaller and more efficient relying more on technology—especially AI—to do the work that once needed more people.