Microsoft is reportedly planning to lay off 3% of its global workforce, according to a recent CNBC report. With around 228,000 employees as of June, this move could affect more than 6,500 workers.
This round of layoffs marks one of the largest reductions since the company cut 10,000 positions in early 2023.
A Microsoft spokesperson stated, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
Despite a strong financial performance, with $70.1 billion in revenue and $25.8 billion in net income reported for the last quarter—both exceeding analysts’ expectations—the company is still moving forward with these cuts.
The layoffs are expected to impact various levels, locations, and teams within the organization.
Unlike previous cuts made in January, which were described as performance-based, this new round is not linked to employee performance, the spokesperson clarified.
The tech industry has seen significant layoffs over the past year, with major companies like Amazon and Meta also announcing job cuts earlier this year.
As the market continues to shift, many tech firms are reassessing their workforce needs to maintain competitiveness.
This impending reduction at Microsoft highlights the ongoing challenges faced by tech companies in balancing workforce size with market demands, even amid strong financial results.
As the situation develops, it underscores a broader trend in the industry where workforce optimization remains a priority, regardless of recent successes.
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