Microsoft has announced it will cut around 9,000 jobs, nearly 4% of its global workforce, marking its largest layoff round since 2023. This decision follows a notable 18% year-over-year increase in net income to $25.8 billion, illustrating a need for operational efficiency despite strong financial results. The layoffs, affecting multiple divisions and levels, aim to streamline processes by reducing organizational layers and management oversight.
As part of a broader restructuring, this round follows earlier cuts that eliminated over 15,000 jobs this year, targeting roles in sales, customer service, and the Xbox division. CEO Satya Nadella’s comments indicate a shift towards increased automation and AI utilization, with AI tools now allegedly contributing to 30% of the company’s code. This trend reflects a larger pattern across the tech sector, where similar workforce reductions are occurring amid a rapidly evolving market focused on AI integration.
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