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5d ago

Microsoft Cuts 6,000 Jobs to Streamline Operations and Prioritize AI

The layoffs, targeting 3% of the workforce, mark Microsoft's largest reduction since 2023, focusing on reducing management layers and reallocating resources toward AI development.

According to Microsoft, the layoffs are being done across all teams, levels and geographies.
A Microsoft sign is seen on March 13, 2020 in New York City.

Overview

  • Microsoft is laying off approximately 6,000 employees, equating to 3% of its global workforce, across all levels, teams, and geographies.
  • This is the company's largest workforce reduction since it eliminated 10,000 jobs in early 2023, with layoffs unrelated to performance issues.
  • The cuts aim to streamline management structures, reduce redundancy, and enhance agility, as outlined by CFO Amy Hood during a recent earnings call.
  • Microsoft plans to invest $80 billion in AI infrastructure this fiscal year, reallocating resources to support its AI and cloud-computing growth strategies.
  • Despite strong recent earnings and record stock prices, Microsoft joins other tech giants like Google and Meta in workforce reductions tied to strategic shifts post-pandemic.