Microsoft to lay off 3% of global workforce — roughly 7K jobs — in shift to develop AI

New York Post - May 13th, 2025
Open on New York Post

Microsoft has announced a significant reduction in its global workforce, cutting approximately 3% of jobs, which equates to around 7,000 positions across its various divisions. This move is part of the company's strategy to reallocate resources towards the development of advanced artificial intelligence. Despite posting a quarterly revenue of $70.07 billion, surpassing Wall Street expectations, the tech giant is making these cuts to streamline management and support its ambitious AI goals. The layoffs come shortly after a previous reduction of 10,000 jobs in January 2023, reflecting ongoing efforts to adapt to a rapidly changing tech landscape.

The driving force behind these layoffs is Microsoft's commitment to investing heavily in AI, with plans to spend up to $80 billion in the fiscal year 2025 on AI projects. As a major backer of OpenAI, Microsoft is in a competitive race with other tech giants like Elon Musk's xAI, Meta, and Google. Analysts, such as D.A. Davidson's Gil Luria, suggest that such investments necessitate workforce reductions to balance the company's financials. This trend is not isolated to Microsoft, as other tech firms like Meta have also made staff cuts following similar strategic shifts. The implications of these changes highlight the tech industry's evolving priorities and the significant resources being directed towards AI development.

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RATING

7.6
Fair Story
Consider it well-founded

The article provides a well-rounded overview of Microsoft's recent layoffs and strategic focus on AI development. It scores highly in accuracy, timeliness, and public interest due to its factual reporting and relevance to current industry trends. The use of credible sources and clear language enhances its reliability and readability. However, the article could improve in balance and transparency by including more diverse perspectives and detailed context about the layoffs' impact. While it touches on potentially controversial topics, it maintains a neutral tone, limiting its potential to provoke debate. Overall, the article effectively informs readers about significant developments at Microsoft and their implications for the tech industry.

RATING DETAILS

8
Accuracy

The article is largely accurate, presenting verifiable facts about Microsoft's layoffs and their strategic pivot towards AI development. The claim of Microsoft cutting roughly 3% of its global workforce, affecting about 7,000 jobs, is consistent with reports from reliable sources. Additionally, the article accurately notes Microsoft's recent quarterly revenue of $70.07 billion, which exceeded Wall Street expectations. However, some areas require further verification, such as the exact number of jobs cut and specific departments impacted. The mention of Microsoft's investment of up to $80 billion in AI by 2025 is significant and aligns with the company's publicized strategic goals. Overall, the story provides a truthful account but could benefit from more precise details regarding the layoffs' impact on different divisions.

7
Balance

The article presents a balanced view of Microsoft's situation, mentioning both the positive financial performance and the negative aspect of workforce reduction. It provides perspectives from Microsoft's official statements as well as analyst opinions, which adds depth. However, the article could have included more perspectives from affected employees or industry experts to provide a fuller picture of the layoffs' impact. The mention of similar actions by other tech companies, like Meta, helps contextualize Microsoft's decision within a broader industry trend, but more diverse viewpoints could enhance the balance.

8
Clarity

The article is well-written, with clear language and a logical structure that makes it easy to follow. It presents information concisely, with each paragraph adding to the reader's understanding of the situation. The tone is neutral, focusing on delivering facts without sensationalism. However, the article could improve clarity by providing more context on the specific impact of the layoffs on different Microsoft divisions. Overall, the article is clear and accessible, effectively communicating the key points of the story.

8
Source quality

The article references credible sources such as CNBC and Reuters, which are known for their reliable reporting. The inclusion of statements from a Microsoft spokesperson and an analyst adds credibility to the claims made. However, the article could improve by citing additional independent experts or affected employees to provide a more comprehensive view. The reliance on reputable financial and tech news outlets supports the article's reliability, but a broader range of sources could further enhance its authority.

7
Transparency

The article is transparent in its sourcing, clearly attributing statements to a Microsoft spokesperson and an analyst. However, it lacks detailed information about the methodology used to obtain these statements. The article does not disclose any potential conflicts of interest, which suggests transparency in reporting. Still, more explicit disclosure of how information was gathered and any potential biases would improve transparency. Overall, the article provides a good level of transparency but could benefit from more detailed context about its information sources.

Sources

  1. https://www.rockpapershotgun.com/microsoft-is-laying-off-even-more-of-its-staff-with-potentially-almost-7000-workers-at-risk
  2. https://www.trueachievements.com/news/microsoft-layoffs-may-2025
  3. https://www.calcalistech.com/ctechnews/article/b1viij11zle
  4. https://timesofindia.indiatimes.com/technology/tech-news/microsoft-announces-second-biggest-job-cuts-in-its-history-we-continue-to-/articleshow/121143623.cms
  5. https://www.marketbeat.com/stocks/NASDAQ/MSFT/news/