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Microsoft Announces 6,000 Global Layoffs to Streamline Operations

The workforce reduction, targeting managerial roles, comes as Microsoft grapples with $80 billion in AI infrastructure spending and renegotiates its OpenAI partnership.

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Overview

  • Microsoft is cutting approximately 6,000 jobs, representing 3% of its global workforce of 228,000 employees, including LinkedIn staff.
  • The layoffs, focused on reducing managerial layers, aim to improve operational efficiency and create high-performance teams.
  • This marks Microsoft’s second major workforce reduction since 2023, when it laid off 10,000 employees.
  • The decision follows mounting pressure to manage massive AI data center investments, projected to reach $80 billion this fiscal year.
  • Microsoft is also reevaluating its 2019 partnership with OpenAI after investing over $13 billion, with negotiations ongoing regarding its future stake.