Microsoft reduces workforce by 3% globally
Microsoft has announced that it is laying off about 6,000 employees, roughly 3% of its global workforce. Job cuts are being made across all levels, groups, and locations.
A Microsoft spokesperson said, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
Layoffs follow strong financial performance
Interestingly, the layoffs come just weeks after Microsoft pronounced strong economic consequences. The enterprise published a net earnings of $25.8 billion within the remaining sector and gave a positive outlook for the future.
At the end of June, Microsoft had around 228,000 employees worldwide. Of the total layoffs, nearly 2,000 are tied to the Redmond, Washington headquarters.
This is not performance-based, but rather aimed at simplifying the structure.
Unlike the smaller performance-based layoffs that occurred in January, these recent job cuts are not related to employee performance. One of the goals is to reduce layers of management and streamline the organization, similar to moves recently made by Amazon.
Industry-wide trend of job cuts
Other tech companies are also cutting jobs. Cybersecurity firm CrowdStrike announced a 5% workforce reduction last week.
Earlier this year, CEO Satya Nadella mentioned plans to change Azure’s sales strategy due to slow growth outside of AI. He stressed the need to adapt during platform shifts and focus on newer innovations.
Microsoft stock continues to rise
Despite the layoffs, shares are performing well. The stock closed at $449.26 on Monday — its highest level so far this year. The all-time high was $467.56, recorded in July 2024.
