KATHMANDU: Microsoft will cut around 4,800 jobs, or about 2.1 percent of its global workforce, as it continues to invest heavily in artificial intelligence while seeking to improve efficiency and reduce costs.

The layoffs follow voluntary buyout offers made earlier this year and come after the company’s weakest first-half stock performance since 2022. Despite strong growth in its Azure cloud business driven by AI demand, Microsoft has projected USD 190 billion in spending for 2026, increasing pressure to improve profitability.

The company is also reviewing its Xbox gaming business after declining margins and weakening revenue.