Microsoft Cuts 4,800 Jobs
Microsoft lays off 4,800 employees, 2.1% of its global workforce, across Commercial Business and Xbox divisions, citing changing technology landscape and AI's impact on work.
Key points
- Microsoft is cutting 4,800 jobs, with 3,200 roles eliminated in divisions outside of Xbox.
- The layoffs affect 2.1% of Microsoft's global workforce, with the Commercial Business segment being a primary target.
- Microsoft EVP Amy Coleman stated that AI is changing how work gets done, but the eliminated roles are not being replaced by AI, at least not immediately.
- The company is undergoing a significant restructuring, including spinning off or selling four game studios and reviewing a fifth for potential closure.
- The layoffs follow a $2.5 billion push to embed 6,000 engineers inside enterprise clients to accelerate AI adoption.
- The move is seen as a response to the rapidly changing technology landscape and the need for Microsoft to adapt and evolve.
Microsoft has announced significant layoffs, affecting 4,800 employees across its Commercial Business and Xbox divisions. The move is part of a broader effort to restructure and adapt to the changing technology landscape. According to Amy Coleman, Microsoft's EVP and Chief People Officer, the company is eliminating roles that are no longer necessary, but notes that AI is not immediately replacing the eliminated jobs. However, Coleman acknowledges that AI is changing how work gets done, and the company must evolve to keep pace. The layoffs are part of a larger effort to streamline operations and focus on key areas, including AI adoption and cloud computing. The company's stock price has fallen by nearly a quarter in the past 12 months, adding pressure to restructure and cut costs. The move is seen as a necessary step for Microsoft to remain competitive in a rapidly changing industry.
Sources
The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.