Microsoft has announced a significant round of layoffs, affecting approximately 6,000 to 7,000 employees—about 3% of its global workforce—as part of a strategic shift towards artificial intelligence (AI) and organizational streamlining.

Microsoft has announced a significant round of layoffs, affecting approximately 6,000 to 7,000 employees—about 3% of its global workforce—as part of a strategic shift towards artificial intelligence (AI) and organizational streamlining. AP News +3 AP News +3 Business Insider +3

🔍 Overview of the Layoffs Scope: The layoffs impact employees across various divisions, including LinkedIn, Xbox, and product management teams. The Times Geographic Reach: While specific regional breakdowns haven't been disclosed, reports indicate that nearly 2,000 positions were eliminated in Washington State alone. AP News Focus Areas: The reductions primarily target management roles, aiming to flatten organizational structures and increase efficiency. AP News 🤖 Strategic Shift Towards AI Microsoft is reallocating resources to bolster its AI initiatives, including significant investments in AI infrastructure and partnerships. The Times +2 New York Post +2 The Australian +2 🎮 Impact on Gaming Division The gaming division, encompassing Xbox and Activision Blizzard, has experienced substantial restructuring. In January 2024, Microsoft laid off 1,900 employees in this sector. Pure Xbox +1 Wikipedia +1 📊 Financial Context Despite reporting strong quarterly revenues of $70.07 billion, Microsoft is undertaking these layoffs to manage costs associated with its AI investments. New York Post 🧭 Broader Industry Trend Microsoft's layoffs reflect a wider trend in the tech industry, where companies are optimizing operations and investing in emerging technologies like AI. Since late 2022, over 70,000 tech jobs have been lost across the sector.