Microsoft, cuts expected corresponding to 6,000 layoffs

Microsoft has announced a massive job cut . The Redmond giant says it will reduce its workforce by about 6,000 people across all divisions, including LinkedIn , and around the world. The move is aimed at regaining efficiency and follows layoffs announced by Amazon and Meta.

Microsoft, the cut of 6000 employees

The US company, with 6,000 fewer positions, has cut its workforce by about 3%, trying to contain costs and recover resources to invest in artificial intelligence.

The company, which had a total of 228,000 employees as of June last year, regularly uses layoffs to prioritize areas of greatest concern, in this case the global challenge is on AI. “We continue to implement the organizational changes necessary to best position the company to succeed in a dynamic market,” a Microsoft spokesperson said. The cuts could affect all levels and geographies and are likely the largest since Microsoft made 10,000 layoffs in 2023. In January, the company made a small number of layoffs due to performance issues, but the new cuts are unrelated to that.

Investments in artificial intelligence

Big Tech has invested heavily in AI, a major growth driver in this new era, while trying to cut costs to protect profit margins. Microsoft reported better-than-expected growth for its Azure cloud computing business and above-expected results in its quarterly earnings call, putting investors’ concerns to rest, but the cost of AI development has weighed on profitability, reducing Microsoft Cloud margins to 69% from 72% a year ago. The Redmond giant has spent $80 billion on data center expansion for the fiscal year, much of it to ease bottlenecks in AI services.