REDMOND (dpa-AFX) - Microsoft Corp. (MSFT) Tuesday reportedly said that it will cut 6,000 workers across all levels, teams and geographies, in an effort to reduce management layers.
'We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,' a Microsoft spokesperson said in a statement to CNBC.
The planned terminations will amount to less than 3% of total headcount, the spokesperson said. They will occur across geographies, employee levels and include LinkedIn, the spokesperson added.
Microsoft had 228,000 employees in June 2024. The company laid off 10,000 people in January 2023, including personnel at the HoloLens augmented reality headset unit and other hardware projects.
In recent years, the software giant has faced mounting pressure to control expenses due to significant investments in the data centers that support its artificial intelligence services and the Azure cloud-computing platform. Microsoft has indicated it expects to spend approximately $80 billion on these server farms during the current fiscal year.
Several other tech companies have also announced layoffs this year. Meta Platforms Inc. (META) in January announced its plans to cut 5% of staff via performance-based terminations and would hire new people to fill those roles.
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