Software firm Microsoft will cut nearly 5,000 jobs – more than 2 per cent of its global workforce – as it admits that “AI is changing how work gets done”.

It’s another in a long line of major tech firms announcing significant layoffs this year, with the growth in artificial intelligence often placed front and centre as being the cause.

Microsoft executive vice-president and Chief People Officer Amy Coleman confirmed the layoffs in a blog post, saying that 4,800 roles would be “eliminated”, as the company focuses on “our people, investments and energy on the priorities that will keep Microsoft positioned to deliver for customers in a fast-changing industry”.

“The people whose jobs are impacted today are our colleagues and friends,” Coleman said.

“They have made meaningful contributions to Microsoft, and we are deeply grateful for everything they have done.”

The majority of the job cuts will be from Microsoft’s Commercial and Xbox gaming divisions, and Microsoft Australia will reportedly be impacted.

There are about 3,000 Microsoft employees in Australia across six offices.

‘We all need to keep learning’

Coleman said that the jobs were “not being replaced by AI”.

“At the same time, what is true is that AI is changing how work gets done,” Coleman said in the blog post.

“Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills and keep adapting as the work evolves.

“Our customers are navigating this same shift, and they’re counting on us to help them through it.”

Microsoft culled 6,000 jobs in May last year, and a further 9,000 in July, which also largely impacted the Xbox division.

The tech giant has now cut about 20,000 roles in the last 18 months.

Gaming changes

As part of the latest changes, Microsoft will be divesting four of its gaming studios under the Xbox umbrella to operate under new management.

Compulsion Games and Double Fine Productions will become independent studios, while Ninja Theory and Undead Labs will be spun off from Microsoft.

Microsoft has spent tens of billions of dollars on its Xbox division, including through the massive acquisition of Activision Blizzard.

Coleman said the restructuring was about aligning the company’s investment, people and energy into its business priorities.

“Our business is changing because the world around it is changing,” she said.

“The way technology is built, deployed and used is transforming faster than at any point in my time here.

“Our customers’ needs are shifting, the business models that serve them are shifting, and that means the work itself has to transform too.

“That means we will need to adjust resources and roles, and shift how we operate so we can have the greatest impact for our customers.”

There have been a series of major layoffs at some of the biggest tech companies in the world this year, with AI often being blamed.

Meta in May laid off 8,000 staff, amounting to nearly 10 per cent of its global workforce.

In Australia, Atlassian cut 1,600 jobs this year, while Wisetech has axed 2,000 roles.

According to layoffs.fyi, just under 120,000 tech workers have lost their job this year across 219 companies.