Microsoft is laying off up to 4 per cent of its workforce, approximately 9,100 employees, in its largest round of job cuts since 2023, according to a report by The Seattle Times on Wednesday. As of June 2024, the company employed around 228,000 people globally.
A spokesperson told Bloomberg that fewer than 4 per cent of the company’s total workforce will be affected. The layoffs will span various teams, regions, and levels of seniority, and are intended to streamline operations and reduce layers of management, the spokesperson added.
“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” the spokesperson said.
In June, Bloomberg News reported that the tech giant was preparing to eliminate thousands of roles, particularly in its sales division. This follows another round of layoffs in May that impacted about 6,000 employees.
As of the end of June 2024, Microsoft employed 228,000 people globally, including 45,000 in sales and marketing. The company frequently reorganizes teams and implements structural changes around the end of its fiscal year, which concludes in June. According to Bloomberg, Microsoft’s top sales executive, Judson Althoff, is set to begin a two-month sabbatical this month. The company has stated that his leave was pre-planned and that he is expected to return in September.
Tech Sector In Turmoil
Technology companies across the board are facing mounting expenses as they strive to remain competitive in the rapidly evolving artificial intelligence landscape. From training large language models to constructing advanced servers and data centers, and creating AI-powered applications, the costs are adding up quickly. Microsoft, having already invested tens of billions of dollars into infrastructure and development, has now assured Wall Street that it plans to rein in spending moving forward.
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