Microsoft began laying off at least 6,000 workers in different parts of the world last week. This is believed to be related to Microsoft’s cost-cutting measures to allocate resources for the development of artificial intelligence (AI) technology.

Since last year, the company has reportedly been spending $80 billion on AI infrastructure.

Microsoft employs 228,000 full-time workers, 55% of whom are based in the US. The layoff of 6,000 workers is equivalent to 3% of the company’s total workforce, the largest in the past two years. The reduction mainly focused on managerial positions.

The company carried out the mass layoff just weeks after it reported strong sales and profits that exceeded Wall Street’s expectations for the first quarter of 2025.