Microsoft has plans to trim its workforce through layoffs.
The planned layoffs will reduce the Washington-based tech company’s total workforce by 3%, CNBC first reported on Tuesday. The number of jobs getting cut is approximately 6,000.
A spokesperson for Microsoft confirmed it has plans for job cuts in a statement to FOX Business, saying the company continues to “implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
It is looking to streamline its processes, procedures and roles and decrease management layers to move more quickly and boost efficiency, according to Microsoft.
Roughly 228,000 people worked for Microsoft around the world as of the end of June 2024, though the company has axed some jobs since then, reports indicate.
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During the company’s third-quarter earnings call in late April, CFO Amy Hood said Microsoft’s headcount at the end of March was “2% higher” than it was at the same time last year but “slightly down” from the second quarter.
The layoffs announced Tuesday will hit Microsoft employees of different levels working in various teams and places around the world, according to CNBC.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 449.26 | +10.53 | +2.40% |
Microsoft said it will make use of new technologies and capabilities to help “empower employees to spend more time focusing on meaningful work.”
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The company has multiple business segments, providing software, computers, gaming consoles, productivity applications, cloud services and more. It has also been leaning more and more into artificial intelligence-powered offerings.
In the third quarter, Microsoft generated nearly $70.07 billion in revenue. Its net income, meanwhile, widened to $25.82 billion.
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The company’s market capitalization hovered around $3.34 trillion as of Tuesday afternoon.
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