Business

Microsoft to cut 4,800 jobs as AI reshapes work, says layoffs aren’t replacing employees

Published

4 weeks ago

6 July 2026

Lesley Marks, Mackenzie Investments CIO of Equities, discusses the weakening momentum of some Magnificent Seven stocks. She notes that increased capital expenditures are impacting free cash flow, leading to equity issuance instead of buybacks.

Microsoft said on Monday that it will eliminate roughly 4,800 jobs – or about 2.1% of its global workforce – as it restructures parts of the company to prioritize artificial intelligence investments and other long-term business goals.

The reductions will primarily affect Microsoft’s commercial and Xbox organizations, with additional changes planned across engineering teams as the company reshapes its operations to better serve customers and accelerate AI adoption. Microsoft has historically announced organizational changes near the close of its fiscal year as it sets spending plans for the year ahead.

In a separate message to Xbox employees, Xbox head Asha Sharma described the move as “the most significant restructure in Xbox history,” saying the gaming division plans to eliminate about 3,200 positions during fiscal 2027, including roughly 1,600 roles effective Monday. Sharma said four game studios will transition to new ownership or management as part of the restructuring, which she said followed years of heavy investment in content, Game Pass and platform expansion that did not grow as quickly as the company had expected.

TOP TOBACCO COMPANY TO CUT THOUSANDS OF JOBS

The reductions will primarily affect Microsoft’s commercial and Xbox organizations. (Cesc Maymo)

In a message to employees, Chief People Officer Amy Coleman said the restructuring is designed to better align Microsoft’s workforce and investments with a rapidly changing technology landscape, while emphasizing that the layoffs are not the result of AI directly replacing employees.

“I also want to be direct that the roles eliminated today are not being replaced by AI,” Coleman wrote. “At the same time, what is true is that AI is changing how work gets done.”

JEFF BEZOS PREDICTS AI WILL CREATE A LABOR SHORTAGE, NOT REPLACE HUMAN WORKERS ACROSS THE ECONOMY

Coleman acknowledged that artificial intelligence is automating some workplace tasks, saying employees across the company will need to continue developing new skills as the technology transforms business operations.

In a message to employees, Chief People Officer Amy Coleman emphasized that the layoffs are not the result of AI directly replacing employees. (iStock)

“Some of the tasks we do every day can now be automated,” she wrote. “We all need to keep learning, keep building new skills, and keep adapting as the work evolves.”

AMERICA CAN’T COMPETE WITH CHINA IN AI WITHOUT THESE WORKERS, META’S PRESIDENT SAYS

Microsoft said it considered alternatives before implementing layoffs, including redeploying more than 4,000 employees into new roles over the past year and reassigning another 500 workers this month. Coleman also pointed to a voluntary retirement program and the transfer of four gaming studios to new ownership or management.

The layoffs come as Microsoft continues investing heavily in artificial intelligence, data centers and cloud infrastructure while integrating AI tools across its product lineup. The broader technology industry has also been reshaping workforces as companies increase spending on AI infrastructure while looking to manage costs, with Amazon and Meta among the firms that have announced job cuts this year.

Ticker	Security	Last	Change	Change %
MSFT	MICROSOFT CORP.	390.49	+6.21	+1.62%

Coleman suggested Monday’s announcement may not be the last round of organizational changes.

“We are still early on this journey, and there will be more changes ahead; other parts of our business will need to make similar changes,” she wrote.

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Microsoft said it will provide affected employees with financial support and career resources as they transition to new opportunities.

Business

Palantir’s CTO believes Chinese AI models could pose an economic threat to the US

Published

2 minutes ago

2 August 2026

NewsAdmin

Palantir’s CTO believes Chinese AI models could pose an economic threat to the US

Palantir CTO Shyam Sankar stated that China has advanced its artificial intelligence capabilities by developing new models through unauthorized means. This development signifies a significant escalation in global AI competition, highlighting concerns over intellectual property breaches and the potential impact on technological leadership. The move underscores the importance of safeguarding innovation in the rapidly evolving AI landscape.

Palantir’s CTO has expressed concerns that Chinese AI models could pose significant economic risks to the United States. As China accelerates its development of advanced artificial intelligence technologies, there is growing concern over the potential for these models to undermine American competitiveness. Chinese AI innovations are rapidly progressing, closing the innovation gap and creating new strategic advantages for China in the global economy.

The CTO highlighted that Chinese AI models could be used to enhance espionage, cybersecurity threats, and economic espionage, potentially compromising US businesses and government operations. This increased capability might lead to a loss of technological edge, threatening America’s leadership in key industries. The worry extends to the potential for China to leverage AI for economic dominance in sectors like finance, manufacturing, and defense.

To counter these risks, Palantir advocates for stronger investments in AI research and development within the US. Enhancing domestic AI capabilities and establishing robust regulatory frameworks are seen as essential steps to safeguard national security and maintain economic stability. The official emphasized that staying ahead in AI is vital to ensuring America’s technological and economic resilience amid global competition.

source

Business

Thailand’s 2027 Action Plan Targets High-Value Tourism Growth

Published

28 minutes ago

2 August 2026

NewsAdmin

Thailand's 2027 Action Plan Targets High-Value Tourism Growth

Thailand’s Tourism Minister introduced the 2027 Action Plan, emphasizing high-value tourism growth through innovation, data integration, and targeting premium markets, while promoting sustainability and year-round travel.

Key Points

Overview of the Action Plan: Minister Surasak Phancharoenworakul launched the Tourism Authority of Thailand (TAT) Action Plan 2027 in Bangkok on July 13, 2026, focusing on positioning Thailand as a high-value tourism destination. Key officials, including Permanent Secretary Natthriya Thaweevong and TAT Governor Thapanee Kiatphaibool, highlighted strategic marketing policies and tourism’s role in the economy.
Strategic Guidelines: The action plan emphasizes four strategic guidelines: elevating Thailand as a high-value destination, enhancing competitiveness through market balance, advancing the industry via data and innovation, and developing a high-performance organization. Integration of data, technology, and AI is crucial for sustainable travel experiences.
Focus on Transformation: The TAT identified 2027 as “The Year of Transformation,” shifting its focus from tourist volume to high-value travelers through targeted demographics, promoting secondary cities, and developing sustainable tourism. An upcoming Market Briefing on July 21, 2026, will connect local operators with global market opportunities, with detailed marketing directions to be announced in August 2026.

Tourism Minister Outlines 2027 Action Plan to Position Thailand as a High-Value Destination

2 hours ago

2 August 2026

NewsAdmin

Idaho mass shooter died from self-inflicted gunshot, police say

Business

Growth slows in Perth housing market

Published

2 hours ago

2 August 2026

NewsAdmin

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Business

AstraZeneca holds talks with Bristol Myers Squibb on $400 billion megadeal, FT reports

Published

3 hours ago

2 August 2026

NewsAdmin

AstraZeneca holds talks with Bristol Myers Squibb on $400 billion megadeal, FT reports

Business

These 9 equity mutual funds delivered over 10% returns in July. Did you invest in any of them?

Published

3 hours ago

2 August 2026

NewsAdmin

Technology-focused mutual funds dominated the performance charts in July, with nine equity schemes delivering returns of over 10%. HDFC Technology Fund topped the list with a 16.91% gain, while international funds accounted for most of the double-digit losers during the month.