Microsoft has announced significant layoffs, impacting nearly 3% of its workforce starting Tuesday. This decision, affecting around 6,000 employees, comes from a company that had about 228,000 full-time staff as of last June, with over half of them based in the United States.
The tech company, headquartered in Redmond, Washington, has stated that these job cuts will target all levels and locations, with a particular emphasis on streamlining management. Notifications were sent out to affected employees on Tuesday.
Earlier this year, Microsoft conducted a smaller round of performance-related layoffs. However, this latest round marks the largest reduction since it cut 10,000 jobs—nearly 5% of its workforce—earlier in 2023, joining other tech firms that have been scaling back post-pandemic growth.
Interestingly, these layoffs follow a strong quarterly report from Microsoft that exceeded Wall Street’s expectations, providing a glimmer of hope amid a challenging period for the tech industry and the broader U.S. economy.
During an earnings call in April, Microsoft’s chief financial officer, Amy Hood, emphasized the company’s commitment to building efficient teams and enhancing adaptability by reducing management layers. She noted that the workforce in March was 2% larger than a year prior, although it had slightly decreased from the end of 2022.
The layoffs will likely impact various segments of Microsoft’s operations, including its career networking platform, LinkedIn.
