Microsoft Implements New Layoffs, Affecting Thousands of Employees

Microsoft Implements New Layoffs, Affecting Thousands of Employees

 Microsoft Implements New Layoffs, Affecting Thousands of Employees

Microsoft announced on Wednesday the start of a new round of mass layoffs affecting thousands of employees, the second such operation in months, as part of broader steps to restructure its workforce and redirect resources toward growth priorities.

The company confirmed in a statement that it had begun sending layoff notices to affected employees, without specifying the exact numbers. However, it clarified that the percentage of those laid off will be less than 4 percent of its total workforce recorded a year ago, which at the time was approximately 221,000 employees, meaning the reduction could include up to 8,800 employees worldwide.

Background of the Latest Layoffs

This move comes just months after a previous wave of layoffs that included thousands of employees, most of whom were from the sales, service, and technical support departments. According to a Bloomberg analysis, Microsoft is seeking to use these rounds to enhance operational efficiency and reduce costs amid increasing competition in the artificial intelligence and cloud services sectors.

A Strategic Shift to Artificial Intelligence

Previous reports indicated that the company is currently focusing its investments on AI projects, expanding its Azure cloud services, and developing its products in collaboration with companies like OpenAI. This is prompting it to reallocate human resources, transferring staff to new growth units at the expense of some traditional teams.

A Broader Wave in the Technology Sector

Microsoft's layoffs are part of a broader wave of job cuts in the US technology sector, including major companies like Amazon, Apple, Google, and Meta, which have reassessed their spending after the significant expansion they experienced during the height of the COVID-19 pandemic.