Microsoft prepares to cut thousands of jobs as AI spending rises
Microsoft is preparing to announce another round of job cuts that could affect under 5,500 employees in sales, consulting and its Xbox division, according to a Business Insider report citing unnamed sources. The cuts, expected as early as next week, would affect less than 2.5% of the company's 220,000‑strong global workforce and are smaller than last year's layoffs of 6,000 in May and 9,000 in July, which together represented about 4% of staff. The move comes as Microsoft ramps up spending on artificial intelligence while trying to curb costs; its stock has fallen about 19% in the past month amid investor worries about AI spending versus near-term returns.
A parallel trend appears at Oracle, which Nairametrics reported cut roughly 21,000 jobs worldwide over the past year—about 13% of its workforce—resulting in $1.8 billion in severance and restructuring charges. For Nigerian tech professionals, the wave of cuts at major foreign firms signals heightened competition for remote roles and underscores the value of building AI-related skills or exploring opportunities with local firms that are less exposed to global cost-cutting cycles.
Given these shifts, should you prioritize up-skilling in AI/cloud platforms now, or focus on building a career with companies whose growth is tied to Nigeria's own digital expansion?