Microsoft has reportedly announced a new wave of layoffs that will affect about 9,000 employees worldwide — less than 4% of its total workforce . Employees from a variety of departments, regions , and experience levels will be affected .
"We continue to implement organizational changes, aimed at better strategically positioning our teams in an ever-changing market," a company spokesperson told CNBC.
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Microsoft has already carried out multiple rounds of layoffs this year: in January it laid off a small percentage of employees due to performance, followed by another 6,000 layoffs in May and at least 300 in June.
The biggest cuts in Microsoft's history occurred in 2014, when 18,000 employees were laid off after the acquisition of 's devices and services Nokia.
According to a source, the new reorganization aims to reduce the number of management levels between front-line employees and senior executives.
Despite the layoffs, Microsoft remains extremely profitable. For the quarter ended March, the company reported net income of nearly $26 billion on revenue of $70 billion, beating Wall Street expectations . Forecasts for the June quarter show revenue growth of 14% (year-over-year).
See also: Amazon: AI will lead to staff reductions
The above figures show that Microsoft is not laying off because it is “pressured.” On the contrary, the cuts indicate a strategic reorientation. The effort to “flatten” organizational structures — that is, to reduce multiple layers of management — betrays a culture that wants less bureaucracy and more flexibility. This can indeed bring faster decision-making, but it often creates insecurity and tension in the internal culture.
The rise of artificial intelligence may also play a role. Companies, especially Big Tech, are investing heavily in AI infrastructure and applications. This is accompanied by a reduction in positions that can be automated, especially at the middle management or support level.
See also: Amazon: New layoffs in book departments
In short, this is a move of strategic alignment, not survival. But it clearly shows that in the new environment where AI is changing work and structures within businesses, no one is considered “irreplaceable.”
Source: www.cnbc.com
