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Microsoft Cuts 6,000 Jobs While Committing $80 Billion to AI and Cloud

The layoffs, affecting 3% of the workforce across all levels and regions, are part of a strategy to streamline operations and prioritize growth in AI and cloud infrastructure.

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Overview

  • Microsoft announced a performance-independent layoff of approximately 6,000 employees, representing 3% of its global workforce.
  • The job cuts are aimed at restructuring the company to create flatter management hierarchies and improve operational efficiency.
  • This is Microsoft's largest round of layoffs since early 2023, when the company eliminated 10,000 positions.
  • Despite the layoffs, Microsoft reported strong quarterly earnings, with a 19% increase in net profit to $25.8 billion and $70.1 billion in revenue.
  • The company plans to invest $80 billion in AI and cloud infrastructure by the end of the fiscal year, emphasizing these areas as key drivers of future growth.