Microsoft has announced that it will lay off nearly 4% of its global workforce as it focuses more on artificial intelligence (AI) and works to reduce costs. The tech company, which had about 2.28 lakh employees worldwide as of June 2024, is making these changes to improve efficiency and stay competitive.
These new layoffs follow a previous round in May, when Microsoft let go of around 6,000 employees. According to recent reports, the latest job cuts will mainly affect departments like sales.
Microsoft is also making big investments in AI. For its financial year 2025, the company has planned to spend $80 billion on infrastructure, especially for AI-related tools and systems. However, the cost of growing its AI systems is affecting the company’s profits, especially in its cloud business.
To manage this, Microsoft said it would reduce the number of management layers and simplify how products, roles, and procedures are handled within the company. This means fewer managers and more direct operations.
One major part of the company, Microsoft’s King division based in Barcelona — known for the popular Candy Crush game — is cutting about 10% of its staff, which is around 200 employees.
Microsoft is not alone in making job cuts. Other big tech companies that are also heavily investing in AI have announced similar steps.
For example, Meta (Facebook’s parent company) recently said it would cut 5% of employees considered to be the “lowest performers.” Google’s parent company, Alphabet, has also laid off hundreds of workers over the past year.
Amazon, another major tech company, has trimmed its workforce in various departments. Its most recent cuts happened in its books division. Before that, it reduced staff in devices, services, and communications units.
Across the U.S., many companies are laying off employees due to economic uncertainty and rising costs. These businesses are trying to save money and become more efficient as they face ongoing challenges.
Microsoft’s job cuts show how even large companies must adapt quickly to balance growth in new technologies with stable business operations.
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