Microsoft is cutting less than 1% of its workforce, which affects about 1,200 employees, as confirmed by a person familiar with the matter. The job cuts are part of a trend, with Microsoft having laid off 10,000 employees in 2023 and 1,900 in early 2024, despite reporting strong earnings. The layoffs target underperforming employees, according to a Microsoft spokesperson, who emphasized a focus on high-performance talent. Microsoft plans to invest $80 billion in AI development this year, amid a complex relationship with OpenAI, which it has heavily funded.