Microsoft Corporation has announced the layoff of approximately 9,000 employees worldwide as the company doubles down on the use of artificial intelligence (AI) tools across its operations.
This is its second major round of job cuts in 2025. The decision, which affects about 4 percent of its global workforce.
In a statement released on Wednesday, July 2, a Microsoft spokesperson said,
“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace.”
The layoffs will affect several departments, including the Xbox gaming division and King, Microsoft’s mobile game studio. Reports also confirm the cancellation of long-anticipated game titles such as Perfect Dark and Everwild.
These job cuts follow earlier rounds this year, including 6,000 layoffs in May and 300 in June, bringing the total number of redundancies to over 15,000 in 2025 alone.
Microsoft’s shift is closely tied to its rapid deployment of AI systems in routine work processes. The company has stated that up to 30 percent of its code is now being generated by AI bots.
Satya Nadella, Microsoft’s CEO, has described AI as essential to the company’s future, telling stakeholders earlier this year that
“AI is not a side project; it’s at the heart of how we build, work, and serve.”
Internal communications reveal that staff are now evaluated on their use of AI. Julia Liuson, President of Microsoft’s Developer Division, said this in an internal email, writing:
“Using AI is no longer optional. It’s core to every role and every level.”
Although Microsoft did not release country-specific figures, Nigeria is unlikely to be a major target in this latest round, largely because of earlier cutbacks in 2024.
Last year, Microsoft laid off nearly half of its Nigerian workforce and downsized its Lagos office from six floors to just two, according to internal sources. Several roles, particularly engineering and technical positions were relocated to Microsoft’s Kenya office.
Therefore, while some Nigerian roles might be affected in this 9,000-job reduction, most of the impact was already felt in the previous year.
Despite the limited immediate fallout, Nigerian professionals, especially those in tech could still face challenges in the long term. Roles involving coding, customer support, and digital content creation are increasingly vulnerable to AI automation.
A recent report by GitHub (a Microsoft-owned platform) found that 50 percent of developers now use AI to write or test code, which could lower the demand for entry-level programmers.
At the same time, Microsoft remains active in Nigeria’s digital development space. The company is involved in several initiatives, including The Nigeria Artificial Intelligence Research Scheme, and The National Centre for Artificial Intelligence and Robotics (NCAIR), in partnership with the Nigerian government.
These efforts are to prepare Nigeria for an AI-driven future. In late 2024, the federal government unveiled its National Artificial Intelligence Strategy, aiming to upskill millions and stimulate AI-led innovation in sectors like agriculture, healthcare, and finance.
But Nigeria still faces obstacles, including unreliable internet infrastructure, a shortage of skilled AI professionals, and unclear policies around data privacy and digital rights.
“There is no question AI will continue to shift the job landscape,” said Chinedu Nwokolo, a Lagos-based digital workforce consultant. “The real question is whether Nigeria is moving fast enough to stay in the game.”
