Microsoft is undergoing significant restructuring, including cutting unnecessary management layers and reducing its workforce. The tech giant confirmed the changes in a statement, though it didn’t disclose the exact number of jobs affected. According to US media reports, approximately 6,000 positions, or about 3% of its global workforce, are expected to be eliminated. This includes 1,985 job cuts in Washington state, as reported in a filing with the state’s labor agency.
In a statement, a Microsoft spokesperson said, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.” The company is focusing on leveraging new technologies to empower employees to concentrate on meaningful work. This move aligns with Microsoft’s ongoing efforts to integrate AI across its products.
The restructuring comes after Microsoft reported strong quarterly results for the January to March period, driven by its cloud computing and AI businesses. The company, celebrating its 50th anniversary this year, was an early adopter of AI technology following the launch of ChatGPT in 2022.
Microsoft’s AI Focus
Microsoft is advancing its plans to deploy AI across all its products. The company aims to empower employees to focus on more meaningful work by leveraging new technologies and capabilities. This strategic shift is part of Microsoft’s effort to stay competitive in a rapidly evolving tech landscape.
The job cuts and restructuring are part of Microsoft’s broader strategy to streamline operations and adapt to changing market conditions. While the exact number of job losses wasn’t disclosed, the reported figures indicate a significant reduction in the company’s workforce.
