News from the AI & ML world
DeeperML
@thetechbasic.com
//
Microsoft has announced major layoffs affecting approximately 6,000 employees, which is equivalent to 3% of its global workforce. This move is part of a broader strategic shift aimed at streamlining operations and boosting the company's focus on artificial intelligence (AI) and cloud computing. The layoffs are expected to impact various divisions, including LinkedIn, Xbox, and overseas offices. The primary goal of the restructuring is to position Microsoft for success in a "dynamic marketplace" by reducing management layers and increasing agility.
The decision to implement these layoffs comes despite Microsoft reporting strong financial results for FY25 Q3, with $70.1 billion in revenue and a net income of $25.8 billion. According to Microsoft CFO Amy Hood, the company is focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers". The cuts also align with a recurring trend across the industry, with firms eliminating staff who do not meet expectations.
Microsoft's move to prioritize AI investments is costing the company a significant number of jobs. Microsoft is following a trend of other technology companies that are investing heavily in AI, the company has been pouring billions into AI tools and cloud services. The company's cloud service, Azure, is expanding at a rapid rate and the company aims to inject more money into this region.
ImgSrc: thetechbasic.co
References :
The decision to implement these layoffs comes despite Microsoft reporting strong financial results for FY25 Q3, with $70.1 billion in revenue and a net income of $25.8 billion. According to Microsoft CFO Amy Hood, the company is focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers". The cuts also align with a recurring trend across the industry, with firms eliminating staff who do not meet expectations.
Microsoft's move to prioritize AI investments is costing the company a significant number of jobs. Microsoft is following a trend of other technology companies that are investing heavily in AI, the company has been pouring billions into AI tools and cloud services. The company's cloud service, Azure, is expanding at a rapid rate and the company aims to inject more money into this region.
ImgSrc: thetechbasic.co
Share:
References :
- Chris Westfall: In a move signaling a significant strategic pivot, Microsoft today announced a reduction of its workforce by approximately 7,000 employees. Here's why.
- Latest from ITPro in News: Microsoft workers face a fresh round of layoffs – here’s who could be impacted
- Dataconomy: Microsoft is laying off 3% of its workforce: 6,500 jobs gone
- thetechbasic.com: Microsoft Announces Major Layoffs to Streamline Operations and Boost AI Focus
- www.windowscentral.com: Microsoft plans to lay off 3% of its workforce, reportedly targeting management cuts as it changes to fit a "dynamic marketplace"
- techstrong.ai: Microsoft’s 6,000 Layoffs Underscore the Price of Exorbitant AI Investments
Classification:
- HashTags: #MicrosoftLayoffs #AIStrategy #CloudComputing
- Company: Microsoft
- Target: Microsoft Employees
- Product: Azure
- Feature: AI Focus
- Type: News
- Severity: Medium