Layoff Details
initiated layoffs, affecting nearly 3% of its workforce, translating to about 6,000 jobs across all levels and geographies, with a focus on reducing management positions.
This marks Microsoft's largest mass layoff since early 2023, joining a trend of tech companies scaling back post-pandemic expansions. The company previously cut 10,000 jobs, nearly 5% of its workforce, in a similar move.
Financial Context and Future Plans
Despite the layoffs, Microsoft recently reported strong sales and profits for the January-March quarter, surpassing Wall Street expectations. This financial performance contrasts with the decision to reduce its workforce.
Microsoft has been investing heavily in artificial intelligence, spending $80 billion in the fiscal year ending in June on data centers and infrastructure to support AI technology development, which is expected to influence its work processes.