Microsoft Announces Layoffs of 4,800 Employees Amid Rising AI Infrastructure Spending

On Monday, Microsoft announced layoffs of approximately 4,800 employees, representing a 2.1% reduction in its total workforce, due to rising spending on AI infrastructure. The company's shares have fallen 20% in the first six months of 2026, marking the worst performance since 2022. This move reflects the pressure of AI investment in the global software sector.