Microsoft is making significant workforce reductions, with over 6,000 employees laid off, which represents roughly three percent of its total workforce. This decision marks the largest job cuts at the company since it let go of 10,000 employees earlier in 2023 and affects various segments across Microsoft, including LinkedIn and international offices.
According to spokesperson Pete Wootton, the organization is undergoing these changes to better align with the rapidly evolving market landscape. The company is also prioritizing the development of high-performing teams and enhancing agility by streamlining management structures. Recently, Microsoft CFO Amy Hood hinted at an ongoing effort to minimize management layers, signaling a shift towards a more performance-oriented culture.
This round of layoffs adds to a series of job cuts that began earlier this year, targeting several hundred positions and affecting departments such as Xbox, where layoffs have occurred in conjunction with the company’s acquisition of Activision Blizzard. In addition, Microsoft has previously reduced staff in its HoloLens and Azure cloud teams, reflecting a broader strategy of restructuring in response to market demands.
Despite the challenges posed by these layoffs, there is a hope that the changes will ultimately lead to a more agile and effective organization, possibly setting the stage for future growth and innovation within the company.