Revolution: Microsoft Replaces 9,000 Workers With AI After Spending $80 Billion To Train It

• The fears around technological advancement has always been that they may replace humans in workplace
• This is already happening as over 9,000 employees have just been replaced by AI models trained over the last year
• Microsoft is following up its last 5,000 layoffs earlier in the year, with another 9,000 layoffs globally

Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.

International technology giant Microsoft is set to sack 9,000 workers in another wave of job cuts in 2025.

The company confirmed that the layoffs will cut across different divisions and departments but is yet to release the list.

There are, however, reports suggesting that Xbox video gaming unit will be one of the top ones affected.

AI to replace 9,000 workers

A Microsoft spokesperson told the BBC that the job cuts are necessary to position the company for success.

The 9,000 jobs amount to about 4% of Microsoft’s total 228,000 global workforce.

The company is currently spending $80 billion to build huge data centres and train AI models.

The company also sent an internal email notifying the gaming staff that it had cancelled the planned reboot of first-person shooter series Perfect Dark, and Everwild, while the studio would be closed.

Other tech firms scout employees

Employee posts across social media suggest that several are going to be exploring roles with other tech firms.

Other tech giants like Meta have been reported to be scouting talent with juicy offers in their inboxes to establish its ‘superintelligence lab’.

OpenAI CEO, Sam Altman, recently claimed that some members of his team had received offers of over $100 million to join Meta.

More job cuts underway

Recall that Microsoft also announced about 6,000 job cuts in May 2025. BBC reports that about 800 positions being eliminated are concentrated in Redmond and Bellevue.

The layoffs no longer come as a surprise as top Microsoft executives have said the company is changing the way employees work and interact with each other.

Amazon has also recently hinted of plans to replace some of its workers with AI.

Google lays off 12,000, warns of more job cuts

Recall that Google CEO Sundar Pichai warned employees that more layoffs were in store at the company.

He noted that the search engine giant will be focusing on new priorities, including artificial intelligence.

This warning came months after a huge job cut of 12,000 roles in 2024, on the grounds of inflated costs and rising interest rates.

Intel initiates 21,000 layoffs

In related news, global chip manufacturing firm Intel had initiated over 21,000 layoffs in a bid to cut down operational costs.

This is part of the Intel restructuring plans after a long period of declining revenues, Legit.ng reports.

Despite the massive layoffs coming in 2025, the company is rebuilding its engineering team by scouting some of the engineering talent it earlier lost to competitors.

Source: Legit.ng