Microsoft on Tuesday said it was slashing unnecessary layers of management and seizing the benefits of new technology as reports said the tech behemoth was laying off thousands of workers.

Microsoft said on Tuesday (May 14) it was laying off less than 3 per cent of its workforce, or around 6,000 employees, as the technology giant looks to rein in costs while funnelling billions of dollars into its ambitious bet on artificial intelligence.

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.