Microsoft to Cut 6,000 Jobs Globally

Microsoft has announced plans to cut approximately 6,000 jobs worldwide as part of a major restructuring initiative aimed at streamlining operations and reducing management layers across the company.

The tech giant confirmed the job cuts on Tuesday, stating they will affect various teams, departments, and geographic regions, including roles at LinkedIn, a subsidiary of Microsoft.

The layoffs represent just under 3 percent of Microsoft’s global workforce, which stood at around 228,000 employees as of June 2024.

A spokesperson for Microsoft told CNBC that the company would continue making necessary organizational adjustments to better position itself for success in a rapidly evolving business landscape.

This marks the latest round of workforce reductions by the US-based software leader. In January 2023, Microsoft laid off 10,000 employees as part of a cost-saving strategy.

The company has been under increasing financial pressure in recent years due to substantial investments in artificial intelligence infrastructure and cloud computing services.

Its Azure platform and AI initiatives have required significant capital expenditure, especially in building and maintaining data centers.

Microsoft expects to spend roughly $80 billion on its data infrastructure during the current fiscal year, underscoring its commitment to staying competitive in the AI and cloud computing markets.