Microsoft is laying off 3% of its workforce, or roughly 7,000 employees, CNBC reported on Tuesday, as the technology giant looks to rein in costs while funneling billions of dollars into its ambitious bet on artificial intelligence.

Microsoft, which is cutting 3% of its headcount, had 228,000 employees as of last June. The maker of Windows and Word is aiming to reduce management layers. Microsoft on Tuesday said that it's laying off 3% of employees across all levels and geographies.