Microsoft set to sack over 6,000 employees; states reasons for drastic action

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Microsoft is set to lay off approximately 6,000 employees, accounting for nearly 3% of its global workforce of 228,000 full-time workers as of June 2024. The company did not specify which positions would be cut, but the layoffs are expected to impact employees at all levels and locations, with a focus on reducing management ranks.

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In a statement, Microsoft explained that the cuts are part of a broader organisational restructuring, saying, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.”

The layoffs follow a smaller round of performance-based cuts earlier this year and represent the largest reduction since Microsoft laid off 10,000 workers (about 5% of its workforce) in early 2023

Despite the job cuts, Microsoft remains financially strong, with robust sales and profits in its most recent quarter. The company’s CFO, Amy Hood, previously noted that Microsoft is focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers.”

The layoffs come as Microsoft adjusts to the changing tech landscape while capitalising on growing demand for artificial intelligence. Microsoft’s recent financial performance has provided some relief amid challenges facing the broader tech industry

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