Microsoft Lays Off 6,000 Employees Amid AI Restructuring
Microsoft has announced a significant workforce reduction, laying off approximately 6,000 employees, which accounts for nearly 3% of its global staff. This move is part of the company's strategic initiative to flatten management layers and enhance operational efficiency, particularly focusing on artificial intelligence (AI) development.
Among those affected was Gabriela de Queiroz, Director of AI for Microsoft for Startups. She publicly acknowledged her departure on social media, describing it as "bittersweet" and extending solidarity to the thousands of others impacted. The layoffs span various departments and are aimed at streamlining operations to better align with the company's AI-driven future.
This restructuring aligns with similar practices by tech giants like Amazon and Google. Microsoft insiders support the changes, citing an overabundance of managers created by promoting engineers into supervisory roles, even with minimal direct reports, which diluted managerial effectiveness. The company reported strong quarterly revenue of $70.07 billion, surpassing Wall Street expectations, but is focusing on restructuring to sustain significant capital investments in AI, expected to reach up to $80 billion in fiscal year 2025.
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