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As part of a global workforce reduction strategy, Microsoft has recently announced plans to cut approximately 4% of its total workforce, potentially affecting around 9,000 employees. The company stated that this decision aims to enhance the integration of artificial intelligence (AI) technology, streamline operations, and make the organization more cost-efficient.
A Microsoft spokesperson said in a statement, “To keep our company and teams prepared for changing market conditions, we are implementing necessary organizational changes.” According to the company’s 2024 figures, Microsoft’s global workforce stood at approximately 228,000 employees, and this layoff is based on that number. Earlier this year, in May, Microsoft had already laid off around 6,000 employees. The current layoffs are primarily focused on reducing management layers and implementing plans to integrate AI technology into its products. The company emphasized its goal of creating a work environment where employees can leverage AI to engage in more creative and meaningful work. Microsoft’s statement further noted, “We have always adjusted our workforce based on strategic business needs, even during good times.” Analysts point out that since the emergence of ChatGPT and other generative AI technologies, Microsoft has rapidly increased its investments in the AI sector. Through its partnership with OpenAI, the company has integrated AI into numerous products, incurring significant infrastructure costs. To manage these expenses and focus on future goals, Microsoft has adopted a strategy of reducing its workforce to control costs. Microsoft has assured that affected employees will receive severance packages, health insurance benefits, and career transition support to ensure necessary assistance during this period. Technology analysts believe that Microsoft’s decision is not an isolated move but part of a broader transformation in the global tech industry. AI, automation, and cost control are the three key objectives driving the restructuring of the tech world today. Other major companies like Google, Meta, and Amazon have also embarked on similar paths of layoffs and reorganization.
