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Microsoft Lays Off Roughly 6,840 Employees Globally
Microsoft has announced that it is laying off roughly 6,840 employees globally. This means about 3% of its total workers, based on the last count of 228,000 people who work there. This is the biggest round of job cuts Microsoft has made since it laid off 10,000 workers in 2023.
The layoffs affect many teams and levels across the company, including people who work at LinkedIn, which Microsoft owns. Even though Microsoft is making a lot of money-reporting $25.8 billion in profit in one recent quarter-they say these job cuts are needed to make the company run better and faster. A Microsoft spokesperson said the layoffs are not because of poor work performance, which was different from a smaller layoff earlier this year.
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Microsoft wants to make the company’s structure simpler by cutting down on layers of management. This means fewer bosses and more direct communication, which they believe will help the company move quicker and be more efficient. This idea is similar to what other big tech companies like Amazon have done recently to reduce “unnecessary layers” in their teams.
Even though Microsoft is doing well financially, with its stock price reaching $449.26 recently, the company still faces challenges. Some parts of its cloud business, especially those not related to artificial intelligence (AI), have not grown as fast as expected. Because of this, CEO Satya Nadella said they need to change how they sell and promote some products.
These layoffs also fit into a bigger trend in the tech world. Many companies are cutting jobs to focus more on AI and cloud computing, which are growing quickly. For example, CrowdStrike, a cybersecurity company, recently cut 5% of its workers and said AI helped them work more efficiently. Microsoft hasn’t said the layoffs are because of AI, but AI is becoming a big part of how they do things. Nadella mentioned that AI now helps write about 30% of Microsoft’s software code, showing how important it is for the company.
The job cuts will affect workers in many places, including about 1,985 people in Washington state, where Microsoft’s main office is. This has made some employees worried about their job security, especially as the company changes how it measures performance and tries to have more engineers and fewer managers.
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Experts say Microsoft’s layoffs are part of a bigger response to economic challenges and new technology trends. While cutting jobs can help the company save money and stay competitive, it can also hurt employee morale. Microsoft plans to keep hiring for new roles that fit their future goals, so the total number of workers might stay about the same in the long run.
Microsoft lays off roughly 6,840 employees globally to simplify its company structure and focus more on growing areas like AI and cloud computing. Even though the company is making good money, these changes show how it is trying to stay strong and flexible in a fast-changing tech world.
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