I think that AI and generative AI specifically is the most transformative technology of our lifetime, which is saying a lot, given that we have had the internet,” he told CNBC.

The layoffs will impact less than 4% of Microsoft’s global workforce, impacting workers across different teams with varying levels of experience, according to a report.

In a recent interview, Microsoft CEO Satya Nadella emphasised that AI's real test lies in fixing real-world issues, and not just demos.