Microsoft has announced a significant reduction in its workforce, laying off approximately 9,100 employees, which accounts for about 4% of its global staff. This move is part of a broader strategy to streamline operations and reallocate resources towards artificial intelligence (AI) and cloud services. (ft.com)
This latest round of layoffs follows previous cuts earlier in the year, including 6,000 positions in May and 2,000 in January, bringing the total number of job reductions to over 17,000 since the start of 2025. The affected roles span various departments, notably impacting the Xbox gaming division, sales, and marketing teams. (apnews.com)
The restructuring aligns with Microsoft's substantial investment in AI infrastructure, with the company pledging $80 billion for data centers in the fiscal year ending June 2025. CEO Satya Nadella has emphasized AI's growing role within the company, noting that a significant portion of code is now generated by AI systems. (ft.com)
Despite these workforce reductions, Microsoft has reported strong financial performance, with better-than-expected earnings and growth in its cloud services. CFO Amy Hood highlighted the need for operational agility and a reduction in management layers to enhance efficiency. (ft.com)
These layoffs reflect a broader trend in the tech industry, where companies like Amazon and Meta are also implementing job cuts as they invest heavily in AI and navigate economic uncertainties. (ft.com)
In summary, Microsoft's recent layoffs are part of a strategic shift towards AI and cloud computing, aiming to position the company for future growth in a rapidly evolving technological landscape.
Source: YourStory.com YourStory | Stories about startups & entrepreneurships
