Microsoft has announced another round of layoffs, cutting over 300 jobs following a significant reduction of 6,000 employees last month.
These ongoing workforce reductions are part of a broader restructuring strategy aimed at aligning the company with its aggressive investments in artificial intelligence (AI).
CEO Satya Nadella described the layoffs as a "realignment" rather than performance-based decisions, emphasizing the organizational changes are designed to position Microsoft for success in a rapidly evolving tech landscape.
The previous round of cuts disproportionately affected software engineers, with over 40% of eliminated positions in Washington state belonging to coding professionals. This highlights the company's shift in workforce priorities as it reallocates resources towards AI infrastructure.
Microsoft plans to spend approximately $80 billion on data centers this fiscal year, underscoring its commitment to AI development despite trimming its workforce. As of June 2024, Microsoft employed about 228,000 full-time workers, with 55% based in the U.S.
The layoffs have sparked criticism over their impersonal execution and reignited debates about automation's role in employment decisions. However, Microsoft maintains that these cuts are necessary for long-term competitiveness in a dynamic marketplace.
This latest job reduction reflects the tech giant's balancing act between cost-cutting and investing heavily in AI, signaling a transformative phase in its corporate strategy.
“These cuts are part of ongoing organizational changes aimed at positioning the company for success in a dynamic marketplace,” a company statement said.
As Microsoft continues to reshape its workforce, the industry watches closely to see how AI-driven restructuring will impact employment and innovation in the tech sector.
Microsoft has cut over 300 more jobs, continuing its AI-driven restructuring after a 6,000-employee layoff last month. These workforce reductions align with the company’s $80 billion investment in AI infrastructure, as CEO Satya Nadella calls the cuts a strategic realignment, not performance-based.
