Microsoft is firing more employees a few weeks after cutting 6,000 roles across the global workforce. More than 300 workers have been affected this time by what the company calls another round of “organizational change.” According to a Bloomberg report.
The layoffs were disclosed in state submissions reviewed by Bloomberg. Microsoft confirmed Monday’s move, saying it is part of a broader strategy to stay competitive and better fit your business with long-term goals, particularly focusing on artificial intelligence and cloud infrastructure.
More than 300 employees were said to have eliminated jobs Monday, according to a Washington State notice reviewed by Bloomberg. ”
Microsoft excludes more staff to boost AI focus
The news comes right after a strong revenue report. Microsoft posted net profit of $25.8 billion for the last quarter, providing a bullish outlook. But even with record profits, the company is adjusting its structure, reflecting similar changes across the tech sector as companies move quickly, shift focus and trim overhead.
In May, Microsoft significantly cut jobs of around 3% of its workforce, across department and leadership levels. At the time, the company said it was about maintaining agile in a changing market. A spokesperson reiterated that Monday’s move is not a performance-based one, but is part of an ongoing effort to flatten the management layer. This reflects Amazon’s latest driving force in eliminating “unnecessary layers” to increase speed and efficiency.
Microsoft is currently on a long list of tech companies that are making cuts despite investing heavily in AI. Last week, CrowdStrike said it was lifting 5% of its workforce. In March, Amazon announced plans to remove 14,000 managers and cut annual costs by cutting its $3.5 billion.
Earlier this year, Microsoft also laid off 1,900 people from its gaming unit a day after it won a $3 trillion rating. It came after a small round of performance-related cuts earlier this year. This latest wave is said to be unrelated to individual performance.
CEO Satya Nadella previously showed a shift in how Microsoft thinks about its strategy for the market as a surge in demand for AI-driven cloud services like Azure. While Azure’s traditional products have slowed growth, AI-specific use has exceeded expectations.
“How do you tweak the incentives and get into the market?” Nadella said earlier this year. “At the point of the platform shift, you want to make sure that even the new design victory is leaning, and don’t keep doing what you did with the previous generation.”
As of the end of May, Microsoft had around 228,000 employees worldwide. The company did not disclose the exact number of this round, but it is one of the largest since last year’s 10,000 field cuts.
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