In the last few years or so, we have witnessed Microsoft laying off thousands of its employees. Back in 2023, the Redmond giant announced significant job cuts, affecting 10,000 employees. Microsoft then said it was a strategic decision to immunize itself from global changes. Fast forward to September of last year, the company fired 650 employees as part of Xbox job cuts. Now, a new round of layoffs is knocking on the doors, as Microsoft has announced its plan to lay off 3% of its total employees.

Microsoft’s new round of layoffs will affect nearly 6,000 employees across the globe

If we go by the number, the planned layoffs will affect at least 6,000 Microsoft employees. The layoffs will affect employees across all levels, teams, and geographies. This year, Microsoft has announced job cuts for the second time. In January, the company fired a small number of employees based on performance reviews. However, this time it’s not related to performance.

In a statement to CNBC, Microsoft’s spokesperson said, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” Microsoft’s spokesperson also told the news agency that one objective of the new round of layoffs is to reduce layers of management.

It’s worth noting that Microsoft is funneling billions of dollars into its AI infrastructure. While it’s unclear, it could be one of the biggest reasons behind the new round of layoffs announced by Microsoft. Not to forget, the company is also actively renegotiating its partnership with OpenAI for IPO and funding.

The decision comes weeks after the company reported strong financial results

Interestingly, the new round of layoffs comes as the company posted a strong earnings report last month. The tech giant reported $70.1 billion in revenue and an 18 percent spike in profits for the January-March period. The company’s cloud computing and artificial intelligence business helped it beat Wall Street expectations. Earlier this year, Amazon also announced job cuts to reduce “unnecessary layers” in its organization.

This article first appeared on Android Headlines

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