Microsoft cuts more jobs amid AI push; Cracker Barrel halts remodels; Office attendance declines

Tech giant Microsoft is further increasing what is already a considerable number of 2025 job reductions as it joins other firms pivoting to artificial intelligence and emerging technologies. Microsoft will also increase the number of days that employees have to work in the office starting in February.

Microsoft plans to cut 42 jobs at its Redmond, Washington, headquarters, according to state notification filings this week. Microsoft since May has announced more than 3,200 job reductions in Washington state and more than 15,000 worldwide, though it continues to add workers in areas such as AI development.

A company statement this week said the latest cuts are part of organizational changes that “are a necessary and regular part of managing our business.” Microsoft said it will “continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.” The AI push has also led to job cuts at firms such as Salesforce and Facebook parent Meta.

Microsoft earlier this year said it plans to invest $80 billion in AI-related technologies, marking a $25 billion increase from what it announced last year. Like many tech rivals, Microsoft is boosting investment in data centers, chips and other elements supporting the latest cloud and information processing technologies.

Microsoft this week also mandated employees to return to offices at least three days per week, starting in the Puget Sound area in late February, according to a memo to workers released to news outlets. Joining other firms making similar moves, Microsoft Chief People Officer Amy Coleman said the company is updating its flexible work policies because “when people work together in person more often, they thrive.” 

Restaurant chain Cracker Barrel is suspending plans to remodel many of its locations after reversing other plans last month over an unpopular logo change that would have eliminated a longtime company mascot. The Lebanon, Tennessee-based operator said Tuesday it has done the same with plans to update interiors of several of its full-service eateries.

The company said it has decided to retain “vintage American” elements such as rocking chairs, antiques and wall knickknacks that evoke an old-style country general store. Plans had called for removing some elements in favor of more sparse, white interiors, along with menu updates in a bid to lure younger consumers. But test locations garnered negative customer feedback.

“We heard clearly that the modern remodel design does not reflect what you love about Cracker Barrel,” the company said in a statement. “We had tested this design in only four out of 660 locations, and we won’t continue with it.”

The company encountered widespread complaints last month after unveiling a revision to its nearly 50-year-old logo that excluded its “Old Timer” character pictured next to a country store barrel. Many customers pushed back on the logo change, with President Donald Trump and other conservative politicians also voicing opposition. 

Office attendance for 10 tracked regions posted a Labor Day holiday downturn but still averaged 51.4% of pre-pandemic levels for the week ended Sept. 3, according to the latest Kastle Systems figures. That was down from 52.4% in the prior week but marked eight straight weeks of postings above 51%.

The security technology firm reported Austin, Texas, again led for office traffic at 66.2% of its pre-pandemic level, with Houston at 60.2%, Dallas at 59.8% and Chicago at 54.4%.

Tracking is based on anonymous keycard data from Kastle’s office property clients. Weekly average attendance has consistently registered above 50% since late January as companies increase in-office work requirements and reduce hybrid and remote schedules.