Microsoft could cut 5,500 jobs as AI push fuels fresh H-1B controversy

Microsoft Reportedly Preparing Fresh Workforce Reduction Amid AI Investment Push

Microsoft is reportedly preparing another round of job cuts as the technology giant continues redirecting resources toward its expanding artificial intelligence strategy.

Industry reports indicate that the company could reduce fewer than 2.5% of its global workforce, potentially affecting around 5,500 employees. An official announcement is expected in the coming days, although Microsoft has not confirmed the plans.

The anticipated layoffs are believed to impact multiple divisions, including sales, consulting, and Xbox. The move follows previous workforce reductions as the company continues restructuring its operations to prioritize AI-driven growth.

Employee discussions on professional networking platforms suggest uncertainty across teams, with some workers claiming they have been gradually removed from projects ahead of the expected decisions. Several employees say they have seen reduced workloads and limited communication from management in recent weeks.

The reports have also renewed public discussion over Microsoft's continued use of the H-1B visa program while reducing jobs in the U.S. workforce. Social media users have pointed to government filing data showing the company remains among the country's leading sponsors of skilled foreign workers, although recent application volumes have declined from earlier peaks.

Analysts note that Microsoft's strategy reflects a wider shift across the technology industry, where major companies are balancing workforce reductions with heavy investments in AI infrastructure, cloud services, and next-generation digital platforms.

Despite the reported layoffs, Microsoft continues to invest billions of dollars in expanding its AI capabilities, signaling that long-term innovation remains a central focus of the company's business strategy.