Microsoft confirmed to CNBC on Wednesday that it is cutting a small percentage of jobs across various departments, with the decision based on employee performance. The tech giant has a workforce of 228,000 employees as of the end of June. ## Impact and Context
The job cuts affect less than 1% of Microsoft’s employees, according to a person familiar with the matter. This move comes as Microsoft continues to navigate its relationship with OpenAI, an artificial intelligence startup in which it has invested over $13 billion. ## Recent History of Job Cuts
This is not Microsoft’s first round of job cuts. In early 2023, the company laid off 10,000 employees and consolidated leases. In January 2024, following the completion of its $75.4 billion Activision Blizzard acquisition, Microsoft’s gaming unit shed 1,900 jobs to reduce redundancy. ## Microsoft’s AI Investments and Challenges
Microsoft’s partnership with OpenAI has been significant, helping the company’s market cap surpass $3 trillion last year. However, the relationship has become more complex, with Microsoft adding OpenAI to its list of competitors. CEO Satya Nadella described the relationship as having “cooperation tension.” ## Future Outlook
