Microsoft Layoffs 6000 people
There is an atmosphere of uncertainty in the world and bad news is coming out for Leos. Tech giant Microsoft is set to make major layoffs and has announced plans to lay off 6,000 workers from its global workforce to reduce management layers. What are the reasons behind this layoff? Let us know. A company spokesperson said the layoffs would represent less than 3% of the total workforce as a result of the planned terminations and would occur across multiple geographies, involving employees at various levels and Linked In staff. Giving the reason for this, the spokesperson said that they are making these organizational changes to maintain their strong position in the rapidly changing market place.
This is not the first time Microsoft is resorting to layoffs. Even before this, in January 2023, the company had fired 10,000 people from the company. Which also included Holo Lens augmented reality headset units and hardware projects. Microsoft employed 2,28,000 people as of June 2024 and the company periodically makes layoffs to focus the workforce on priority areas. This round of layoffs will involve the removal of 2,000 workers from Microsoft’s headquarters in Redmond and Washington and will begin on July 13. Microsoft has had to spend heavily in the past few years on data centers that power its artificial intelligence services and Azure cloud computing units. In the last fiscal year, the company spent Rs 80 billion on server farms. Due to which the pressure on the company has increased. Just last year, the company’s CEO Satya Nadella had said that AI is helping his company save labour costs. A similar statement came to light. Recently, at a JP Morgan conference, Microsoft finance executive Bill Firth said that they are saving millions of dollars a year by using AI for customer support. Just last month, the company told its workforce that it was working on increasing software sales through the use of third-party firms to reach small and mid-sized customers. It’s not just Microsoft that’s making sauce in the tech space. Similar news has also come from Meta and Sales Force this year.
What do you think about this layoff news?
Do let us know in the comments section.