Microsoft joins AI-driven tech layoff wave with 4,800 job cuts

Big Tech's historic AI outlays, set ‌to top $700 billion this year, are piling pressure on companies to show returns from the technology and offset the rising cost of rolling it out across their businesses.

Booming AI demand has powered growth at Microsoft's Azure cloud-computing business, which was the exclusive seller of OpenAI's models until April, but the mounting cost of ​building data centres to run those services is squeezing its cash flows.

The company, expected to report ​results later this month, had in April forecast quarterly Azure sales above Wall Street estimates, but also issued ‌a $190 billion ⁠spending projection for 2026 that massively surpassed expectations.