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Microsoft Cuts 6,000 Jobs in Restructuring Effort

The layoffs, affecting nearly 3% of the workforce, aim to streamline management layers and support $80 billion in AI investments.

A Microsoft sign is seen on March 13, 2020 in New York City.
Entrance of Microsoft headquarters building in Issy les Moulineaux near Paris, France.

Overview

  • Microsoft is laying off approximately 6,000 employees, representing nearly 3% of its global workforce of 228,000.
  • The job cuts span all levels, teams, and geographies, including LinkedIn, and are not tied to individual performance.
  • This is Microsoft's largest workforce reduction since 2023, when 10,000 jobs were eliminated during a broader tech downturn.
  • The company is reallocating resources as it invests $80 billion in AI infrastructure, focusing on data centers to support AI services.
  • Despite strong financial performance, including $70 billion in quarterly revenue, the cuts aim to reduce management layers and improve agility.