It’s unclear how much Microsoft hopes to save through the layoffs. When the company laid off 10,000 workers in 2023, analysts estimated that the move was poised to save Microsoft about $2.5 billion over the subsequent year. That figure included the $1.2 billion charge the company had logged in connection with the job cuts.

These are the largest layoffs since the 10,000 in 2023. Tech giant Microsoft announced on Tuesday that it will lay off about 3% of its global workforce, equivalent to around 6,800 employees, in an initiative that will impact all regions and hierarchical levels.

Microsoft has laid off 3% of its global workforce to streamline operations and invest $80 billion in AI initiatives, marking its largest cuts since 2023.