Microsoft is set to reduce its global workforce by 3%, according to a report by CNBC. With around 228,000 employees worldwide as of June 2024, this means over 6,500 jobs could be affected by the layoffs.
This marks one of the company’s largest reductions since it let go of 10,000 employees in 2023.
A Microsoft spokesperson confirmed the layoffs, stating, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
Despite reporting strong financial results in April — $70.1 billion in revenue (a 13% increase) and net income profits of $25.8 billion (an 18% increase) — the company has decided to proceed with the staff cuts. This latest round of layoffs is expected to impact employees across various levels, locations, and teams. Microsoft also had layoffs earlier in January, which were performance-based, but this current round is not linked to individual performance, according to a company spokesperson.
This move follows a larger trend of job reductions within Big Tech companies. Amazon and Meta also conducted significant layoffs in January.
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