Microsoft is laying off approximately 6,000 employees, nearly 3% of its global workforce, in its largest job cut since early 2023. This strategic move comes as the tech giant faces financial pressure from aggressive investments in AI, despite strong quarterly results in its cloud division, Azure. The layoffs will impact various sectors, including LinkedIn and Xbox. Following a previous round of 10,000 job cuts earlier this year, these layoffs reflect Microsoft's need to reallocate resources amid rising infrastructure costs and narrowing profit margins.
The layoffs, affecting nearly 3% of Microsoft's global workforce, are part of their strategy to manage financial pressure while investing heavily in AI infrastructure.
This round of layoffs is Microsoft's largest since cutting 10,000 jobs earlier in 2023, reflecting broader trends in the tech sector.
Despite strong quarterly results and growth in Azure, Microsoft's profitability has faced challenges, leading to these organizational changes.
Analysts suggest that the job cuts signify Microsoft's efforts to maintain a healthy bottom line during significant investments in AI and data centers.
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