The reductions, which affect various regions and divisions including LinkedIn and technical teams, are part of a broader organizational overhaul. A Microsoft spokesperson emphasized that these changes are designed to “best position the company for success in a dynamic marketplace.”

Roughly 2,000 of the affected jobs are based at the company’s Redmond, Washington headquarters, with layoffs scheduled to begin on July 13. The remaining cuts will span across different employee levels and international offices, according to a state filing.

Microsoft, which reported a headcount of 228,000 employees as of June 2024, has conducted similar layoffs in the past. A notable round occurred in January 2023, when 10,000 roles were cut, including positions tied to HoloLens and hardware development.

The company’s current cost-cutting efforts come as it prepares to spend up to $80 billion this fiscal year on data centers and infrastructure to support its AI-powered services and the Azure cloud platform. Microsoft executives have pointed to AI as both a driver of innovation and a means to improve efficiency.

Speaking at a recent JPMorgan conference, Microsoft’s Bill Duff revealed that AI is already saving the company “hundreds of millions of dollars” by handling tasks like customer service, marketing content creation, and compliance analysis—work traditionally done by human staff.

This pivot is not isolated. Microsoft has also announced that it will outsource more sales responsibilities for small and mid-sized businesses to external partners, a move that further streamlines internal operations.

The tech sector more broadly is undergoing similar transformations. Meta, for instance, announced plans to trim about 5% of its staff earlier this year, and Salesforce recently eliminated over 1,000 roles, reallocating resources to new AI-focused departments.

For full details, read the original Bloomberg article here:
👉 Microsoft to Cut 6,000 Jobs to Reduce Management Layers