Technology giant Microsoft announced plans today to reduce its global workforce by approximately 3%, affecting nearly 6,000 employees across all levels and regions, as the company realigns its resources to support its growing artificial intelligence initiatives.
The layoffs, which will impact employees across various departments and geographic locations, come despite Microsoft’s recent strong financial performance.
Just last month, the company reported quarterly results that exceeded analyst expectations, with particularly robust growth in its Azure cloud-computing division.
According to a statement provided to The Verge by Microsoft spokesperson Pete Wootton, these organizational changes are deemed “necessary to best position the company for success in a dynamic marketplace.”
The restructuring follows Microsoft’s pattern of periodic workforce adjustments as it shifts focus toward emerging technologies.
According to the company’s most recent SEC filing, Microsoft employed approximately 228,000 workers globally as of June last year, with 126,000 based in the United States.
Industry analysts view the move as part of a broader strategy among tech giants to streamline operations while heavily investing in AI development.
The company has assured affected employees they will receive comprehensive severance packages and transition support services.
Microsoft has also indicated that despite these cuts, it continues to actively recruit for specialized roles in its AI and cloud computing divisions.
The announcement comes amid a challenging period for the tech industry, with several major companies implementing similar workforce reductions while simultaneously expanding investment in artificial intelligence technologies.
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