Microsoft is cutting less than 1% of its 228,000 workforce based on performance, amid challenges with its AI tool, Copilot, and underperforming stock. This adjustment follows a significant layoff earlier in 2023 and reflects a strategic shift in response to competitive pressures. Despite strong financial performance, the slow rollout of Copilot has raised concerns. Microsoft's future growth relies heavily on its AI and cloud services, particularly Azure, as it navigates a competitive tech landscape.