Microsoft is laying off about 6,000 workers worldwide. The company is focusing more on artificial intelligence and simplifying management.
This move affects nearly 3% of Microsoft’s global workforce. According to a government filing, around 2,000 of these job losses are in Washington state.
The company said the layoffs are part of changes needed to stay competitive.
A Microsoft spokesperson said, “We are making organizational changes necessary to best position the company for success in a dynamic marketplace.”
The spokesperson also said Microsoft aims to become more agile and reduce layers of management.
The layoffs come after the company posted strong earnings in early 2024. Most of the growth came from cloud services and AI tools.
AI Expansion Is Reshaping Microsoft’s Workforce
Microsoft has invested heavily in artificial intelligence. It began a major partnership with OpenAI in 2022, soon after the release of ChatGPT.
The partnership has allowed Microsoft to add AI features to many of its products, including Windows, Microsoft 365, and Azure Cloud.
A company representative said, “We want employees to spend more time focusing on meaningful work by leveraging new technologies and capabilities.”
The layoffs signal a shift in how work is done at the company. Roles that are repetitive or administrative may be replaced or reduced as AI tools take over those tasks.
Microsoft’s Copilot AI assistant is now built into Office tools like Word, Excel, and Outlook. Users can write emails, summarize documents, and analyze data using AI.
The company believes that streamlining its workforce will help teams focus on innovation and delivery.
Microsoft’s Strong Market Position and Future Direction
Despite the layoffs, Microsoft remains financially strong. In the first quarter of 2024, it reported high revenue and profits.
Much of this came from Azure, Microsoft’s cloud computing division, which grew over 30% year-on-year.
The company is celebrating its 50th anniversary this year. Since its founding in 1975, Microsoft has become one of the largest tech companies in the world.
Its early embrace of AI has given it an edge over rivals like Google and Amazon in recent months.
Microsoft has not ruled out more changes in the coming months as it continues to adapt to fast changes in technology.
“We are committed to investing in areas that drive future growth while staying accountable to our customers, partners, and employees,” said the spokesperson.
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