Microsoft began laying off about 6,000 workers Tuesday, nearly 3% of its entire workforce and its largest job cuts in more than two years as the company spends heavily on artificial intelligence.

The technology company, headquartered in Washington, is cutting 122 workers in Silicon Valley. The layoffs heavily affected software engineering roles.

Microsoft is laying off 6,000 employees in 2025, focusing on AI growth and cutting management layers despite strong earnings. U.S. staff hit hardest.