Microsoft has announced another significant round of layoffs, marking its second mass workforce reduction in just a few months. The tech giant began sending layoff notices on Wednesday, affecting various teams across the globe, including those within its sales division and Xbox video game business.
While Microsoft did not disclose the exact number of employees to be laid off, it indicated that the cuts would be less than 4% of its workforce from a year ago. As of June 2022, Microsoft employed approximately 228,000 full-time workers, which means the latest wave of layoffs could impact about 9,000 employees. This disclosure comes on the heels of multiple layoffs earlier in the year, including a major reduction in May that resulted in around 6,000 job losses, representing nearly 3% of its global workforce.
The May layoffs were described as the largest job cuts the company had executed in over two years and were primarily aimed at personnel in software engineering and product management roles. Additionally, Microsoft trimmed another 300 positions in June at its Redmond, Washington headquarters, following nearly 2,000 job reductions within the Puget Sound region in May.
According to the company, the ongoing layoffs are part of broader organizational changes designed to position teams more effectively for success in today’s dynamic marketplace. Microsoft’s Chief Financial Officer, Amy Hood, discussed the need for “building high-performing teams” and expressed a goal to enhance agility by minimizing management layers.
Despite repeated affirmations that the layoffs are part of a strategic effort to streamline operations, concerns persist regarding the future of jobs in the company. The focus on cutting software engineering positions has raised alarms about the potential implications of Microsoft’s own artificial intelligence (AI) code-writing tools, which could further reduce the need for human programmers. Microsoft CEO Satya Nadella previously remarked that “maybe 20, 30% of the code” for certain projects could be generated by software, highlighting the growing capabilities of AI in the tech sector.
Overall, Microsoft’s series of layoffs reflects a significant shift within the organization as it adapts to evolving market demands and technological advancements. The cuts affect numerous teams and signal a cautious approach to workforce management amidst a rapidly changing industry landscape.
