Just weeks after its largest wave of job cuts in recent memory, Microsoft has reportedly laid off hundreds more employees. This latest move underscores the ongoing trend in the tech industry to reduce costs while simultaneously investing heavily in artificial intelligence.
According to a report citing a notice filed in Washington state, over 300 additional employees were informed on Monday that their positions were being eliminated. This follows the 6,000 job cuts that Microsoft announced last month, impacting a significant portion of its global workforce.
A Microsoft spokesperson confirmed these recent reductions, stating that they are part of “organizational changes necessary to best position the company for success in a dynamic marketplace.” While the specific roles affected in this latest round are unclear, previous layoffs primarily impacted software engineers.
This continued trimming of the workforce reflects a broader shift within the tech sector. Companies like Microsoft and Meta have been vocal about the efficiency gains offered by AI-assisted coding tools, suggesting that these technologies are playing a role in the reduced need for certain positions. Other tech giants have also implemented layoffs as they prioritize investments in data centers and AI development.
Microsoft CEO Satya Nadella recently addressed the earlier job cuts, emphasizing that they were part of a strategic realignment to focus on long-term priorities, particularly in the realm of artificial intelligence. He stressed that the reductions were not a reflection of individual employee performance.
As of June 2024, Microsoft employed approximately 228,000 full-time staff globally, with 55% based in the United States. These successive rounds of layoffs signal a significant restructuring as the company adapts to the rapidly evolving tech landscape and its increasing focus on AI.