Microsoft Announces Major Layoffs Affecting 9,000 Employees Amid Strategic Restructuring
Microsoft is laying off around 9,000 employees, about 4% of its workforce, as part of a strategic restructuring while continuing to invest in AI and infrastructure.
Overview
Microsoft is laying off approximately 9,000 employees, representing about 4% of its total workforce, in its largest layoff in over two years.
The layoffs will impact various global teams, including the Xbox gaming division and sales, as part of organizational changes.
Despite the job cuts, Microsoft reported strong financial results with $26 billion in net income for the March quarter and $70 billion in revenue.
Microsoft is investing heavily in data centers and AI infrastructure, pledging $80 billion in capital spending for fiscal year 2025.
CEO Phil Spencer announced the layoffs to position the Xbox business for strategic growth, following a trend of reducing management layers.
Analysis
Center-leaning sources frame Microsoft's layoffs as a significant and troubling trend, emphasizing the impact on employees and the company's management structure. They express concern over the frequency and scale of job cuts, hinting at a cost-cutting motive tied to AI investments, reflecting a critical perspective on corporate decisions.
Sources (12)
Center (7)
FAQ
Microsoft is conducting layoffs as part of a strategic restructuring to increase agility, reduce management layers, and better position the company and teams for success in a dynamic marketplace, even while reporting strong financial results.
The layoffs will impact various global teams, including the Xbox gaming division and sales teams, as part of organizational changes.
Microsoft plans to invest heavily in data centers and artificial intelligence infrastructure, pledging $80 billion in capital spending for the fiscal year 2025 to support strategic growth.
The layoffs of approximately 9,000 employees represent about 4% of Microsoft's total workforce, marking the company's largest layoff in over two years.
History
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