Slashing Ranks: Microsoft's Plan to Ax 7,000 Jobs Posting Record Profits
Microsoft implements significant workforce reduction, affecting numerous employees.
Microsoft is ready to roll out the pink slips yet again after boasting impressive Q1 results. Approximately 7,000 employees might find themselves jobless as a result of the software juggernaut's latest purge.
This round of layoffs will impact less than 3% of Microsoft's overall workforce, according to official statements. The company, which currently employs over 228,000 people (with around 126,000 in the U.S.), is looking at potentially shedding roughly 6,800 jobs if three percent is indeed the target.
These job cuts are being orchestrated across departments and regions worldwide, as a Microsoft spokesperson explained to CNBC, "We're making organizational changes to set the company up for success in a continually shifting market." One of the main objectives is to trim down the number of managerial tiers within the company. Unlike the January job cut, which was performance-based, this round of layoffs isn't linked to employee performance.
Recall that back in early 2023, Microsoft had already given the ax to approximately 10,000 jobs. With workforces of tech companies ballooning thanks to the COVID-19 pandemic, Microsoft is now focusing on investing heavily in AI data centers. The company is all set to fork out an astounding $80 billion on AI-related projects this fiscal year alone.
Microsoft has been reaping rich rewards, as its Q1 results, announced at the end of April, surpassed analyst predictions, pulling in a whopping quarterly profit of around $26 billion.
Reference(s)
- Microsoft aims to cut 7,000 jobs, with 2,000 employees in the U.S., as tech companies trim their staff [n TV] [dpa, via lme]
- Microsoft plans layoffs, citing need to focus on AI, cloud projects [Reuters]
- Microsoft Announces More Layoffs in its Quest to Align with AI-driven Future [The Verge]
Microsoft is evaluating adjustments in its community policy, possibly impacting 7,000 employees globally, as part of its efforts to focus on AI and technology-driven projects. The finance department may also be affected, as the company plans to invest a significant amount, about $80 billion, in AI data centers this fiscal year.
