Microsoft's forthcoming job cuts to affect less than 2.5% of workforce, with announcement expected next week - Business Insider

Microsoft has announced plans to lay off approximately 9,000 employees, representing less than 4% of its global workforce as of June 2024. The reductions will span teams, geographies, and levels of experience, as part of ongoing organizational restructuring efforts. This latest round of job cuts follows similar reductions earlier in the year, including 6,000 layoffs in May and at least 300 in June.

The move aligns with Microsoft’s broader strategy to streamline operations and reduce management layers, aiming to enhance agility and focus on strategic growth areas such as artificial intelligence and cloud services. The company has invested heavily in AI infrastructure, including a $80 billion commitment for 2025 to expand AI data centers.

Microsoft’s recent financial performance has been robust, with $26 billion in net income for the March quarter and strong revenue growth driven by Azure and productivity software. Despite the layoffs, the company’s stock remains near record highs, closing at $497.45 per share on June 26.

The announcement comes amid broader industry trends, with other tech firms implementing workforce reductions as they adapt to evolving market demands and AI-driven efficiencies.