Microsoft has announced cutting thousands of jobs in the largest layoff since 2023.
According to CNN, the company on Wednesday, July 2, in the third mass layoff in recent months, decided to fire 4% of its global workforce.
As the tech industry continues to make workforce cuts, a Microsoft spokesperson said that the latest downsizing would affect around 9,000 workers, which is the largest layoff since it cut 10,000 employees in 2023.
A spokesperson of the tech giant stated, “We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” adding that the company is cutting managerial layers and utilising new technologies to make employees more productive.
Moreover, Phil Spencer, Microsoft’s CEO of gaming, in a memo to employees, wrote, “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.”
The staff reduction in the tech sector has increased after the companies have incorporated artificial intelligence (AI) to increase the efficiency of the workforce.
Even the Microsoft CEO Satya Nadella earlier this year said that 20% to 30% of the company’s code was generated by AI. He also revealed that they are also planning to invest billions in AI infrastructure.
