There is a market and business watch group called Challenger, Gray and Christmas (CGC). They track job layoff activity including in the tech sector. AI is by far the leading cause of layoffs in the US. And more are coming at Microsoft.
NW Tech Giant to Cut More in July
According to the CGC report, 87,714 jobs nationally have gone away that were attributed to AI. That far outweighs, according to Geekwire, the 54.836 for all of 2025.
Microsoft last year saw two phases of cuts, which is not unusual, they often adjust employment twice a year based on projects, growth and other factors. Last year, they cut 15,000, which out of a global workforce of 220,000, may not seem like a lot.
But many of them, thousands, were in WA state, especially on the west side. And now, company Officials say another 2.2 percent of that global workforce will be going away.
Where Are the Cuts Coming From?
Geekwire reports they will be from sales, consulting and their X-Box Division. This is happening as the company has spent nearly $100 billion by fiscal year’s end on AI development.
US tech job cuts are up 66 percent this year over the same period of 2025, that 2.2 percent cut, from a workforce of 220,000, amounts to about 4.840. It is not known yet exactly how many will be in WA state.
Microsoft Stock Dumps on Layoff News
Microsoft stocks dropped 19 percent to a 52-week low, experts are questioning whether the heavy AI-themed investing will actually pay off down the road, according to Seattle-based Geekwire.
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