Australian employees caught in Microsoft job purge affecting 4,800 workers worldwide

By CAITLIN POWELL - NEWS REPORTER Published: 01:48, 7 July 2026 | Updated: 01:59, 7 July 2026 Australian employees at Microsoft are expected to be affected by the tech giant's decision to cut 4,800 jobs across its global workforce.  Microsoft said on Tuesday that it would cut about 2.1 per cent of its employees. The company has six offices across Australia and employs approximately 3,000 staff, some of whom are expected to be made redundant, ABC News understands.  Microsoft's chief people officer Amy Coleman told employees in a memo that 'the roles eliminated today are not being replaced by AI (artificial intelligence)'. 'At the same time, ​what is true is that AI is changing how work gets done,' she said. The giant's Xbox gaming business will also be overhauled as the company gets rid of five studios and axes 3,200 jobs in the division. Earlier this year, about seven per cent of the US workforce - 9,000 people - were offered voluntary buyouts. 'Microsoft has been managing down its workforce in order to pay for its AI investments,' managing director of DA Davidson Gil Luria told the ABC. Australian employees at Microsoft are expected to be affected by the tech giant's decision to cut 4,800 jobs across its global workforce (Pictured, a Microsoft store in Sydney) 'By keeping its headcount down they have been able to ​accelerate revenue growth while maintaining the same margins.' The Daily Mail has contacted Microsoft for comment. Microsoft is the latest technology giant to announce job cuts that impact Australian staff. In February, WiseTech CEO Zubin Appoo revealed an 'AI transformation program' would result in about 2,000 jobs getting the axe this year. The same week, Commonwealth Bank announced their plan to lay off 300 Australians, despite recording a $5billion profit earlier in the year.  A month later, Mike Cannon-Brookes said more than 1,600 Atlassian workers had been made redundant, with about 30 per cent of the sacked employees based in Australia. He said AI had affected 'the mix of skills we need' and 'the number of roles required in certain areas'. Workers hit by the cuts received emails within 20 minutes of Cannon-Brookes outlining the decision in a video message to staff.