Microsoft has announced a major round of layoffs. On Tuesday, the company revealed that it will eliminate unnecessary management positions, leading to the job loss of thousands of employees.
Though Microsoft hasn’t disclosed an exact number, reports suggest that around 6,000 workers will be affected.
The company is planning to reduce its workforce by about 3%. This includes 1,985 employees from its home state of Washington.
A Microsoft spokesperson stated in an email, “We will continue to implement the organizational changes necessary to position the company for success in a dynamic market.”
Why is Microsoft Laying Off Employees?
The main reason behind the layoffs is Microsoft’s ongoing plan to integrate Artificial Intelligence (AI) across its products.
The company aims to empower its employees to focus more on meaningful work by leveraging new technology and capabilities.
Microsoft recently reported strong quarterly results for the January-March period, driven by its success in cloud computing and AI advancements.
The company is also celebrating its 50th anniversary this year and is focused on AI, particularly after the launch of ChatGPT in 2022, which made waves in the tech industry.
Layoffs at Other Companies
Microsoft is not alone in this trend. Several other major companies in the U.S. are also laying off employees.
For example, in early May, United Parcel Service (UPS) announced the firing of 20,000 employees.
UPS said this was due to the uncertain economy, rising costs, and a reduction in shipments from its largest customer, Amazon.
