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.

Microsoft, based in Redmond, Washington, said the layoffs will be across all levels and geographies but the cuts will focus on reducing the number of managers.

This round of job cuts is Microsoft ’s second biggest since 2023, when the company laid off around 10,000 employees. The move comes as the tech conglomerate shifts focus towards artificial intelligence to keep up with the competition.