Microsoft announced Tuesday it will lay off approximately 6,000 employees—less than 3% of its global workforce—as the tech giant seeks to control costs while continuing to invest heavily in artificial intelligence.

The job cuts, which will span various levels and regions, represent one of the company’s largest workforce reductions since early 2023, when it eliminated 10,000 positions.

A smaller round of layoffs occurred in January due to performance-related issues, but the latest cuts are not connected to those, according to CNBC, which first reported the news.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement.

The move comes as Microsoft, along with other major tech firms, ramps up spending on AI technologies, which are increasingly viewed as critical to future growth. At the same time, companies have been trimming costs elsewhere to protect profit margins. Google, for instance, has also carried out multiple rounds of layoffs in the past year to focus on AI development, according to media reports.

Despite recently reporting better-than-expected earnings—driven by strong growth in its cloud-computing platform, Azure—Microsoft is grappling with narrowing profit margins. Microsoft Cloud’s gross margin dropped to 69% in the March quarter, down from 72% a year earlier.

The company has allocated $80 billion in capital spending for this fiscal year, much of it aimed at expanding data center infrastructure to support its AI ambitions. Analysts say such investments are putting pressure on the company’s finances.

As of June 2024, Microsoft employed around 228,000 people worldwide.