Microsoft to lay off 7,000 employees as part of restructuring plan
The job cuts will impact employees across various levels and regions, marking one of the company’s largest layoffs since 2023.
Microsoft is laying off around 7,000 employees, or 3% of its workforce, as it seeks to reduce costs and invest heavily in the rapidly growing field of Artificial Intelligence (AI), according to a report by CNBC.
The job cuts will impact employees across various levels and regions, marking one of the company’s largest layoffs since 2023, when 10,000 jobs were cut.
The latest round of layoffs comes as the company looks to streamline its management structure, without any connection to the performance-based cuts made earlier this year.
The move to trim its workforce comes as Microsoft, like other major tech companies, focuses its efforts on AI, which has become a key driver of growth for the industry.
Microsoft’s push into AI is aimed at competing with rivals, including Google, which has also implemented layoffs as part of its own strategy to focus on AI.
Despite these job cuts, Microsoft has seen strong growth, particularly in its cloud-computing division, Azure, which exceeded expectations in its latest earnings report, helping to calm investor concerns amid a challenging economic environment.
The company had a global workforce of 228,000 employees by the end of June 2023.
