Connect with us

Indian Daily Post

Microsoft Layoffs Cross 15,000 After Fresh Cuts

Microsoft Layoffs Cross 15,000 After Fresh Cuts

Microsoft Layoffs Cross 15,000 After Fresh Cuts

Microsoft Lays Off 9,000 Employees, Pushing Total Job Cuts Past 15,000 Since May

In another blow to its global workforce, Microsoft has announced the layoff of 9,000 employees across various departments, marking one of the company’s most significant rounds of job cuts this year. This move comes just a month after a previous wave saw over 6,000 employees being let go. With the latest announcement, Microsoft’s total job cuts since May 2024 have now surpassed 15,000.

According to a report by CNBC, the latest layoffs represent less than 4% of Microsoft’s total global workforce. The cuts are part of what the company described as an ongoing restructuring effort aimed at aligning its teams for long-term success in an increasingly competitive and fast-changing technology landscape.

In an internal email, Microsoft stated that it would continue to implement “organizational and workforce adjustments” as necessary to optimize its operations. “We are making changes to position the company and its teams for success in a dynamic marketplace,” the company explained. However, Microsoft declined to provide detailed figures or specific departments affected beyond acknowledging that the gaming division was among those impacted.

Microsoft Gaming CEO Phil Spencer addressed the layoffs in a memo to staff, noting that the company would be narrowing its focus to ensure long-term growth. “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” Spencer wrote.

While the company cites restructuring and efficiency as reasons for the cuts, industry experts point to a deeper trend—automation and artificial intelligence (AI) reshaping the global tech workforce. Microsoft has been at the forefront of the AI boom, investing billions into AI development and partnerships, including its collaboration with OpenAI. However, the push for automation and AI-driven operations is now increasingly linked to job displacements across the industry.

Microsoft began reducing its workforce earlier this year. The initial round in January impacted less than 1% of its employees and was framed as a performance-based review. But the cuts deepened significantly in May, when over 6,000 employees were let go. In June, a further 300 positions were eliminated. These reductions come after Microsoft laid off approximately 10,000 employees in 2023.

The wave of job cuts at Microsoft mirrors a broader pattern across the tech industry, where major players are aggressively shifting towards AI-led strategies. Companies like Meta (formerly Facebook), Google parent Alphabet, and Amazon have also significantly downsized their workforce over the past year.

Meta recently announced plans to cut around 5% of its lowest-performing employees, citing an internal performance review. Alphabet has shed hundreds of roles as it repositions for AI-centric growth, focusing more on automation and cloud services. Amazon has also undergone several rounds of layoffs, most recently affecting its books division, following previous cuts across devices, services, and communication departments.

The trend raises concerns about the balance between technological advancement and workforce sustainability. While AI offers the promise of enhanced productivity and the elimination of repetitive tasks, its rapid adoption is also threatening jobs across sectors—from tech and customer support to creative industries and media.

In Microsoft’s case, the layoffs seem particularly jarring, given the company’s strong financial position and continued investment in AI innovation. The company’s cloud and productivity divisions, powered by Azure and Microsoft 365, have seen consistent growth. However, this expansion has not translated into job stability for many employees.

The tech giant maintains that its actions are necessary to maintain competitiveness and agility in a shifting digital economy. But as the tech industry barrels toward an AI-dominated future, the human cost of automation is becoming increasingly apparent.

Employees across the industry are now grappling with uncertainty as companies continue to restructure. And while innovation remains the driving force, critics argue that companies must also consider more sustainable, transparent, and human-focused approaches to transformation.

As of now, Microsoft has not announced if further job cuts are planned, but the message is clear: the tech workforce is undergoing a fundamental and painful reshaping in the age of AI.

IT.

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in Business

To Top