Microsoft has announced plans to lay off around 9,000 workers, roughly 4% of its global workforce, as it accelerates its transition to an AI-first company. This marks the second major round of layoffs this year as the tech giant invests heavily in artificial intelligence infrastructure.

The cuts will affect employees across various departments, including engineering, sales, and support. Microsoft said the decision reflects a need to “align resources with strategic priorities,” including its $80 billion investment in AI data centers and software.

CEO Satya Nadella emphasized that AI will be at the heart of Microsoft’s future products and services. The company has already integrated AI into tools like Microsoft 365 and Azure cloud services.

While the layoffs have sparked concern among affected workers, markets responded positively. Shares rose as investors backed the company’s vision for AI-driven growth.

Microsoft’s restructuring highlights how AI is not just reshaping technology it’s reshaping workforces and corporate strategies across the globe.