Microsoft cuts approximately 9,000 jobs at the start of fiscal year 2027 as AI capital spending tops $100 billion
Microsoft confirmed roughly 9,000 layoffs on July 1, 2026, the second day of its new fiscal year, affecting sales, consulting, and Xbox gaming roles. The cuts represent less than 4% of its global workforce and are tied explicitly to cost control as AI infrastructure spending crossed $100 billion in FY2026.