Microsoft employees faced with another round of layoffs

Microsoft conducted another round of layoffs this week, impacting various teams across geographies.. While the exact number of affected employees has not been disclosed, LinkedIn posts from those impacted indicate cuts in product and program management roles.

A Microsoft spokesperson explained, “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”

This restructuring comes shortly after Microsoft’s fiscal year ended on June 30, a common time for the company to reorganize parts of its business. Last month, Microsoft cut around 1,000 jobs, including positions in its Azure cloud unit and HoloLens mixed-reality team. Earlier this year, the tech giant laid off nearly 2,000 employees in its gaming unit, following its $69 billion acquisition of Activision Blizzard (the creators of the famous Call of Duty gaming franchise).

These layoffs are part of Microsoft’s broader strategy to maintain profit margins amid increased capital spending on cloud infrastructure necessary for AI applications. The company’s headcount surged during the pandemic but has since stabilized, with around 227,000 employees worldwide at the end of 2023, down from 232,000 the previous year.

More than 100,000 tech workers have been laid off this year across the industry, continuing a trend from last year when over quarter of a million employees were let go.

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