Microsoft preparing another round of layoffs
Microsoft is reportedly planning to cut fewer than 5,500 jobs (under 2.5% of its workforce), mainly across sales, consulting, and Xbox. The restructuring comes amid continued heavy AI infrastructure spending
Amid the rapid rise of AI, the company has been facing both concerns that it’s spending too much on the new tech – with commitments of $190 billion on new infrastructure over the coming years – and fears that bots could render traditional software tools obsolete.
Shares in Microsoft tanked 19% in June for the stock’s worst month since the dot-com crash of the early 2000s.
News of additional layoffs comes as little surprise after Microsoft earlier this year launched a voluntary retirement buyout round for US employees whose years of employment and age are 70 or higher when added together.
About a third of the company’s 9,000 eligible workers took the offer, allowing Microsoft to cut fewer roles in this year’s expected layoff round, a source told Business Insider.
Layoffs have also been anticipated in Microsoft’s gaming unit, after new Xbox CEO Asha Sharma called for a “resetting” of the company,” saying it was “not in a healthy spot” amid declining revenue.