Microsoft will lay off 3% of its employees
By ForGeeks Microsoft has announced that it is laying off approximately 6,000 people. This is a continuation of a disturbing trend of mass layoffs in the tech industry, which has been increasing every year.
Despite strong financial performance in the latest quarter, the company has decided to restructure internally. In a statement to the media, Microsoft said that streamlining its management structure and simplifying business processes were key reasons for the layoffs. According to CNBC, the company’s total number of employees in June 2024 was about 228,000.
Why Microsoft went for layoffs
In an email to Mashable’s editorial board, a Microsoft spokesperson explained: the company is adapting to «dynamic market conditions». Such moves, the corporation said, are necessary to increase flexibility and long-term competitiveness.
Management did not specify which departments or regions would be most affected. But in the industry, such announcements often signal a deeper restructuring within corporations, especially in the face of investor pressure and the need to rapidly adopt new technologies.
An announcement of this kind is often a sign of deeper restructuring within corporations, especially in the face of investor pressure and the need to rapidly adopt new technologies.
The wave of layoffs at Big Tech continues
Microsoft isn’t the only major tech company to cut staff in recent months. Meta* also previously laid off some employees, focusing its efforts on developing artificial intelligence. Intel made a massive downsizing of up to 19,000 people in the summer of 2024, aiming to save $10 billion by 2025.
The trend is clear: even IT giants are being forced to cut costs and overhaul the structure of their teams. And while mass layoffs used to be seen as an emergency measure, today they are becoming part of a strategy to adapt to new economic conditions.
The trend is clear: even IT giants are being forced to cut costs and reorganize their teams.
What happens next? Perhaps other major companies will follow Microsoft’s lead in the coming months. Stay tuned.
* Owned by Meta, it is recognized as an extremist organization in Russia and its activities are banned.
The Microsoft to lay off 3% of employees story was first published on ITZine.ru.
