Microsoft to slash 9,000 jobs in latest brutal cut amid AI push: report

New York Post

a day ago

Microsoft said Wednesday that it will lay off about 9,000 workers in the software giant's latest round of brutal cuts this year.
The layoffs will impact less than 4% of Microsoft's global workforce, impacting workers across different teams with varying levels of experience, a source familiar with the matter told CNBC.
Microsoft has already slashed thousands of positions this year as it focuses on cutting layers of management and shifting resources toward the artificial intelligence race.
Advertisement
Microsoft CEO Satya Nadella speaking at a conference in May.
AFP via Getty Images
Bloomberg reported last month that Microsoft was planning job cuts in its sales division.
'We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,' a Microsoft spokesperson told CNBC.
Meanwhile, Microsoft reported nearly $26 billion in net income and $70 billion in revenue in the most recent quarter, far outperforming Wall Street estimates.
Advertisement
Microsoft did not immediately respond to The Post's request for comment.
Its most recent layoff round in May slashed more than 6,000 jobs, or about 3% of its global workforce, as it eradicates middle management roles.
The layoffs announced Wednesday similarly seek to reduce the layers between individual contributors and top executives, a source familiar with the matter told CNBC.
Advertisement
Microsoft said it will lay off about 9,000 workers.
AP
In January, the software giant axed less than 1% of its workforce based on performance in an attempt to keep up with cutthroat tech rivals, mimicking Elon Musk's 'hardcore' approach.
As of last summer, the company employed 228,000 workers. It cut 10,000 roles throughout 2023.
Microsoft has led mammoth layoff rounds in the past, axing 18,000 roles in a single sweep in 2014 after acquiring Finnish telecommunications firm Nokia.
Advertisement
The company is projecting strong revenue growth of 14% year-over-year as it expands its Azure cloud business and corporate software subscriptions.
Shares in Microsoft have risen more than 17% so far this year.
Meanwhile, the company is reportedly weighing whether to abandon its breakthrough partnership with Sam Altman's OpenAI.
It has considered pausing talks with the ChatGPT maker if the two parties are not able to agree on the size of Microsoft's future stake in OpenAI, the Financial Times reported last month.
The company will rely on its existing contract with OpenAI through 2030, according to the report.
Several other software companies have trimmed their workforces this year, including homework helper Chegg and CrowdStrike, which suffered a massive outage last year that disrupted airlines, banks and the hospitality industry.