Microsoft lays off 40 more employees in Washington amid massive AI investment

Microsoft is letting go of another 40 Washington-based employees, as the company continues to streamline its workforce while ramping up record investments in artificial intelligence, according to media reports.

The latest cuts, disclosed in a state filing on Monday, are separate from earlier global layoff announcements. In May, Microsoft said it would shed more than 6,000 workers worldwide, followed by another 9,000 job losses in July.

Also Read: Microsoft's 2025 layoff ledger: More than 15,000 jobs axed in seven months

So far in 2025, the Redmond-headquartered company has eliminated 3,150 positions in Washington state alone, including the latest round. A Microsoft spokesperson described the moves as part of "necessary and regular" organizational changes, reports suggest.

The layoffs come despite Microsoft delivering record quarterly revenues and profits, largely fuelled by its booming cloud and AI business.

Last week, the company revealed it had poured $88 billion into building AI infrastructure over the past year and plans to invest an additional $30 billion by the end of September.

Also Read: Satya Nadella says Microsoft layoffs ‘weighing heavily’ on him amid AI restructuring

In a memo to employees last month, CEO Satya Nadella acknowledged the "incongruence" between job cuts and strong financial results. "This is the enigma of success in an industry that has no franchise value. Progress isn't linear. It's dynamic, sometimes dissonant, and always demanding," Nadella wrote.

Despite ongoing layoffs, Microsoft's total headcount remains steady at 228,000, the report added.

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