Microsoft has confirmed its third round of cuts in recent months laying off thousands of employees. The staff reduction will affect less than 4% of the company’s total workforce, or around 9,000 workers, according to a company spokesperson.
It marks the tech giant’s largest layoffs since it cut 10,000 employees in 2023 and comes amid workforce cuts elsewhere in the tech industry.
“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace”, a Microsoft spokesperson said in a statement, adding that the company is reducing managerial layers and making employees more productive with new technologies.
It’s unclear whether the adoption of AI directly contributed to these recent cuts and which Microsoft divisions will be affected. The Verge reported that Xbox leader Phil Spencer sent an internal note saying that his staff would be affected. Bloomberg also previously reported that the planned July layoffs would target the sales and Xbox teams.
These cuts come after Microsoft laid off 3% of its staff, roughly 7,000 employees, in May. As of July 2024, the last time Microsoft formally reported its total headcount, the company employed 228,000 workers.
Microsoft said in April that its quarterly profits had increased 18% to $25.8 billion during the three months ended March 31, on the back of strong performance for its cloud business and AI services. The company is expected to release earnings for its fiscal fourth quarter later this month.
Source: CNN
Image Credit: Microsoft
