Key Highlights:
- Microsoft to lay off nearly 3% of its global workforce, impacting around 6,000 employees.
- Layoffs span all levels and locations, with a focus on reducing layers of management.
- Announcement follows four straight quarters of better-than-expected earnings.
- Move reflects ongoing efforts to streamline operations in a rapidly evolving tech landscape.
Microsoft is moving ahead with another significant round of job cuts, confirming on Tuesday that it will lay off approximately 6,000 employees, or about 3% of its global workforce. The company, which reported strong profits and sales growth for the January–March quarter, said the layoffs are part of a broader effort to adapt to a dynamic market and streamline its organizational structure.
The reductions will affect employees across various departments and regions, though Microsoft noted it will particularly target management roles, aiming to reduce layers and improve agility. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft said in a statement. The company’s last full headcount disclosure in June 2023 listed 228,000 full-time workers, with around 55% based in the United States.
These cuts come just over a year after Microsoft’s early 2023 layoff of 10,000 workers, which marked about 5% of its workforce at the time. That wave of layoffs aligned with industry-wide efforts to downsize following aggressive hiring during the pandemic. Although Microsoft implemented a smaller round of performance-based cuts earlier this year, the current move represents the largest job reduction in over a year.
Interestingly, the layoffs follow a period of consistent financial outperformance. Microsoft has exceeded Wall Street earnings estimates for the past four consecutive quarters, and its chief financial officer Amy Hood recently emphasized a shift toward leaner teams with fewer managerial layers. Despite the tough news for employees, analysts suggest the move reflects Microsoft’s strategy to stay competitive and responsive amid ongoing shifts in the tech sector.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.
<p>The post Microsoft to Cut 6,000 Jobs Despite Strong Profits and Solid Growth first appeared on toplivenews.com.</p>
<p>The post Microsoft to Cut 6,000 Jobs Despite Strong Profits and Solid Growth first appeared on toplivenews.com.</p>
