Microsoft is set to lay off about 3% of its workforce, equating to more than 6,600 employees out of approximately 228,000. This action marks the largest job cut since a wave of layoffs in 2023, where 10,000 positions were eliminated. The cuts, affecting all levels within the company, particularly aim to reduce managerial roles, as indicated by company leadership. These organizational changes are part of Microsoft’s strategy to increase agility and ensure success amidst a dynamic market environment, despite achieving strong financial results recently.
"We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson said in a statement to CNBC.
Microsoft said the new cuts will affect all locations and levels, including LinkedIn and Xbox, but the focus is on reducing managers.
Chief Financial Officer Amy Hood said that the company would increase its 'agility' by 'reducing layers with fewer managers.'
Microsoft, which is headquartered in Redmond, Washington, is currently the most valuable company in the world, with a market cap of $3.337 trillion at press time.
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