Microsoft hit by EU gatekeeper ruling, plans AI‑driven job cuts

The European Commission classified Microsoft Azure as a "gatekeeper" under the Digital Markets Act, expanding its investigation into the cloud provider’s bundling practices and imposing stricter interoperability requirements. Microsoft responded by outlining its AI Cloud Partner Program and new security‑focused licensing for its Agent 365 platform, while its shares showed a modest rise but remained well below the 52‑week high.

Separately, the company announced it will cut less than 2.5% of its worldwide workforce – amounting to several thousand jobs – primarily in the Xbox division, sales and consulting units. The reductions coincide with a budget of over $100 billion earmarked for AI and cloud infrastructure, including substantial investment in AI chips, signaling a shift of resources toward generative‑AI services.

Analysts note that the combined regulatory pressure and restructuring could affect Microsoft’s growth trajectory in its core cloud business, even as the firm pushes its AI offerings into the market.