Microsoft to Lay Off 3% of Its Global Workforce
On Tuesday, Microsoft announced plans to reduce its global workforce by approximately 3%, impacting employees across various levels, teams, and geographic locations. With a total headcount of 228,000 as of June 2024, this move could affect around 6,800 positions. The company stated that these latest layoffs are part of ongoing organizational changes aimed at positioning Microsoft for success in a dynamic marketplace.
A Microsoft spokesperson emphasized in a statement to CNBC that these job cuts are not performance-based, distinguishing them from previous cuts earlier in the year that targeted underperforming employees by saying:
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,”
Instead, the current reductions are part of a broader effort to streamline operations and reduce management layers.
This announcement comes shortly after Microsoft reported better-than-expected financial results and an optimistic quarterly forecast in late April.
Despite strong earnings, the company appears to be aligning its workforce to focus on strategic growth areas, particularly in artificial intelligence and cloud services by eliminating 3% workforce.
The tech industry has seen a wave of layoffs in recent years, with companies like Meta, Amazon, and Google also reducing their workforces and it seems like the AI is there to be blamed for this.
Analysts attribute this trend to overhiring during the pandemic and a subsequent shift towards efficiency and profitability.
Microsoft’s latest round of layoffs reflects the company’s ongoing efforts to adapt to changing market conditions and prioritize investments in key areas like AI shift, Quantum Computing, and more.
