In a significant move reflecting the ongoing adjustments within the tech industry, Microsoft has announced a reduction in its workforce by three percent, which equates to approximately 6,840 positions. This decision comes as part of the company’s strategic efforts to align itself with the evolving dynamics of the marketplace. As of June 2024, Microsoft employed around 228,000 individuals, making this layoff a notable shift in its operational landscape.
Details of the Layoffs
According to reports from CNBC, Microsoft has already filed a WARN notice in Washington state, indicating that 1,985 employees will be affected. However, it remains unclear whether this figure pertains solely to Washington or encompasses the entire United States.
A representative from Microsoft stated, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” This statement underscores the company’s commitment to adapting to current market conditions.
This latest round of layoffs is part of a broader trend observed at Microsoft over the past year. In January 2023, the company made headlines by cutting 10,000 jobs, which represented 4.5% of its workforce. Following that, in January 2024, an additional 1,900 positions were eliminated within its gaming division, and by September 2024, another 650 employees were let go.
Phil Spencer, head of Microsoft’s gaming division, acknowledged the emotional toll of these changes, stating, “Throughout our team’s history, we have had great moments, and we have had challenging ones. Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players.”
As the company navigates these transitions, Spencer expressed gratitude for the support and compassion shown among team members during these difficult times. Looking ahead, Microsoft remains focused on its objectives while managing the complexities of workforce changes.
In January 2025, the firm is expected to announce further cuts, though the specifics of these layoffs have yet to be disclosed.
