Microsoft is set to reduce its global workforce by 3%, affecting over 6,500 employees from its approximately 228,000-strong workforce, according to reports from CNBC. This decision marks one of the company’s most significant staffing cuts since the reduction of 10,000 roles in 2023.
In a statement to TechCrunch, a Microsoft representative noted the ongoing organisational changes are aimed at positioning the company for success in an evolving market landscape. This announcement comes on the heels of a strong financial performance in April, where Microsoft reported $70.1 billion in revenue, reflecting a 13% increase, and net income of $25.8 billion, an 18% rise, surpassing analysts’ expectations.
Despite these positive financial results, the impending layoffs are expected to impact various levels, locations, and teams within the company. While Microsoft conducted previous layoffs in January, which were performance-based, the current round of cuts is stated to be unrelated to performance issues, as clarified by a company spokesperson to CNBC.
The trend of workforce reductions is not isolated to Microsoft; many major tech firms, including Amazon and Meta, have also announced significant layoffs in the past year.
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