Two major US tech companies announce mass layoffs amid Artificial Intelligence boom. Check details
The technology sector's brutal workforce reduction continues in 2025 with Microsoft recently announcing another round of significant layoffs in its Xbox division next week as part of a broader reorganisation. Amazon CEO Andy Jassy said the company will reduce its workforce in the coming years just as the two companies invest billions in artificial intelligence efforts.
Recently, Bloomberg reported that after cutting 6,000 employees in May, tech giant Microsoft Corporation plans to layoff 'thousands' more jobs next month, particularly in sales. This comes as the company looks to 'trim its workforce' amid increased spending on artificial intelligence (AI), it added. The layoffs are expected to be across teams, with major hits likely among sales employees, sources told Bloomberg.
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Microsoft layoffs in 2025
Microsoft is reportedly going to sack employees in its Xbox division next week, reports Bloomberg as part of a broader company-wide reorganisation. This is the fourth major layoff for Xbox in the past 18 months, following three significant reductions last year and the closure of several subsidiary studios.
Xbox, which develops video-game hardware and software, has faced pressure from Microsoft executives to improve profit margins since the $69 billion acquisition of Activision Blizzard Inc, finalised in 2023. The tech giant often implements major organisational changes at the end of its fiscal year, which concludes on 30 June.
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Earlier this year, Microsoft laid off more than 300 employees as a part of its cost-cutting measures. "We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,' a Microsoft spokesperson said, according to Bloomberg.
In May, Microsoft reduced its workforce by 3%, affecting around 6,000 employees across all levels, teams and geographies. This was the company's largest round of layoffs since it eliminated 10,000 roles in 2023. In January, Microsoft terminated a small number of employees, citing performance-based issues.
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'They don't know what the...': Trump drops 'F bomb' as Iran-Israel ceasefire deal crumbles
Microsoft's layoffs coincide with its significant investments in artificial intelligence with the company recently announcing a $400 million investment in Switzerland to develop cloud-computing and AI infrastructure. In January, Microsoft committed $3 billion to develop AI infrastructure, including new data centres in India in the next two years.
'The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first,' Microsoft chairman and CEO Satya Nadella said earlier.
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Amazon layoffs in 2025
Earlier this month, Amazon CEO told employees that job cuts in the tech giant would continue as AI will reduce the company's corporate workforce over the next few years. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," Jassy wrote in an internal memo. "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."
The company has already laid off more than 27,000 employees since 2022, including recent cuts to its devices and services units. These layoffs reflect a broader trend in the global tech industry. In early May, Google laid off around 200 employees, primarily in its global business unit in teams handling sales and partnerships. Similarly, Amazon reduced approximately 100 jobs in its devices and services unit in another round.
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Time of India
20 minutes ago
- Time of India
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President Donald Trump speaks from the East Room of the White House in Washington, as Vice President JD Vance, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth listen. (Carlos Barria/Pool via AP) On June 22, 2025, when US President Donald Trump authorized a series of unprecedented airstrikes against Iranian nuclear sites, it marked America's most significant military escalation in the Middle East since the invasion of Iraq. While international condemnation was swift and predictable from nations like Russia, Turkey, and Pakistan, the most notable voice was the one largely missing from the chorus: China. As per an Opinion by Karishma Vaswani in Bloomberg, Trump's decision to bomb Iran's nuclear sites dramatically exposed the boundaries of China's influence, leaving Beijing relegated to the diplomatic sidelines. Despite robust rhetorical condemnation-branding the strikes as a 'serious violation' of international law-Chinese leader Xi Jinping has notably refrained from any meaningful diplomatic or military response. Instead, Trump swiftly transitioned from striking Iranian facilities to mediating a tenuous ceasefire between Israel and Iran, reinforcing Washington's longstanding dominance in global crises. China, meanwhile, stuck to a cautious script, advocating restraint without putting its geopolitical weight behind concrete diplomatic initiatives. Why it matters The cautious Chinese response underscores Beijing's strategic limitations, contradicting Xi's carefully cultivated narrative that China can counterbalance US power globally. China has steadily positioned itself as a responsible alternative to US leadership, especially under Trump's turbulent America First policies. But this crisis lays bare the stark gap between China's rhetoric of global responsibility and its actual influence in geopolitical flashpoints. At stake for Beijing is the credibility of its claims of promoting a multipolar world, raising questions among countries in the Global South and the Middle East about China's reliability as a genuine global power beyond economic partnerships. Zoom in Beijing's interests in Iran are substantial but complicated, rooted primarily in energy and economic investments. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Investire è più facile che mai BG SAXO Scopri di più Undo China imports approximately 90% of Iran's oil exports, accounting for nearly 14% of China's total crude imports. Yet despite such dependency, China's direct investments in Iran have been relatively modest compared to its stakes in Saudi Arabia or the UAE, reflecting cautious Chinese corporations wary of crossing US sanctions. The 25-year, $400 billion strategic partnership agreement inked in 2021 between Beijing and Tehran promised massive infrastructure and energy projects. Yet actual implementation has lagged due to fears of provoking Washington's ire. Bill Figueroa, a China-Iran expert at the University of Groningen, underlines this point clearly: "Chinese state-owned companies have largely stayed away, mostly out of fear of running afoul of US sanctions. " Trump's military strikes have thus sharpened these contradictions. With the US flexing its military might, Beijing's primary response has been passive: evacuating thousands of Chinese citizens from Iran and urging stability to safeguard its oil supplies through the strategically vital Strait of Hormuz. Between the lines China's passivity in this crisis aligns with Xi Jinping's innate caution in foreign policy. 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Gedaliah Afterman, a China expert at Israel's Reichman University, noted that despite close Sino-Iranian ties, 'it's not clear whether or not [China] could convince Iran,' especially given China's lack of meaningful leverage over military affairs or diplomatic outcomes. For countries in the Global South and the Gulf, China's championing of a multipolar world may now ring hollow. Governments are looking for reliable crisis partners, not just trade and development. Beijing's hands-off approach is raising doubts about how much weight it's really willing to carry. Karishma Vaswani in Bloomberg The big picture China's limited influence in the Iran crisis has deeper global implications. Despite diplomatic breakthroughs in the Middle East, such as the Saudi-Iranian normalization deal brokered by Beijing in 2023, China remains fundamentally constrained in leveraging its economic power into geopolitical clout during major crises. Trump's proactive yet aggressive approach in Iran contrasts sharply with China's cautious diplomacy, reinforcing global perceptions of US military dominance and diplomatic reach. This diminishes China's ability to effectively position itself as a credible alternative to US global leadership. Furthermore, Trump's assertiveness could reshape calculations in Beijing, particularly regarding potential US responses in other hotspots closer to China, such as Taiwan. Gedaliah Afterman noted: 'Trump's willingness to intervene with force in Iran might make Beijing think the US is more likely to respond militarily to a potential Chinese invasion of Taiwan.' Conversely, other analysts suggest US military entanglement in the Middle East could reduce strategic pressure on China elsewhere, including on economic fronts. Mohammed Alsudairi, a China-Middle East expert at the Australian National University, said: 'US political and strategic bandwidth is limited. The US could be dragged into a quagmire, indirectly benefiting China.' What's next Looking forward, Beijing will likely continue its cautious approach in the Middle East. Its primary focus will remain on protecting economic interests, particularly securing oil supplies and safeguarding trade routes, without provoking further confrontation with the US. There is a possibility, however, that China might gradually seek to strengthen its diplomatic role in less contentious regional issues-continuing infrastructure investments and quiet diplomacy through the Belt and Road Initiative, rather than direct confrontation or military involvement. Yet the lingering question remains whether China will ever translate economic clout into genuine geopolitical power or if Beijing will consistently prefer caution, leaving the global stage largely dominated by more assertive powers like the United States. 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Mint
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35 minutes ago
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