Microsoft is all set to layoff 6000 employees soon. The tech giant said it is “to implement organisational changes necessary to best position the company for success”. Technically, it is set to cut 3% of its workforce.
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This is the biggest cut since 2023 when it laid off 10,000 employees. Microsoft is trying to trim down while scaling up in terms of AI and cloud computing to reshape its future.
The company is said to be pumping in tens of billions of dollars into data centers and infrastructure to support its growing AI tools and services. The company is said to be spending $80 billion this year, a large part of which will go into AI expansion.
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It will help the company to compete with Amazon, Meta and Google. Though there is no news of exactly where the cuts will take place, it is being said they will happen across levels and departments mostly impacting LinkedIn and international offices.
Another point to be noted is that the cuts aren’t based on performance. It is a step to make the company leaner and focus on its core priorities.
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Traditionally, Microsoft is known for its software and Windows operating system. Over the years, its operations have grown massively. Today it is AI and cloud-tech obsessed. However, profits are shrinking like in its cloud division Azure.
It is trying to make up for AI expansion by reducing head count. And Microsoft isn’t alone. Tech giants like Google, Amazon, Meta have been quietly laying off employees for two years as they continue to invest big in AI, cloud computing and data centers.
