Microsoft is laying off about 7,000 employees, approximately 3% of its global workforce, as part of a strategy to flatten its management structure. This move aims to streamline operations and increase agility within the company, following an earlier round of layoffs in January 2023. These organizational changes reflect Microsoftâs efforts to adapt in a dynamic marketplace, focusing on high-performing teams and reducing managerial layers. While not explicitly linked to AI, the company hinted at leveraging new technologies to eliminate non-essential tasks for remaining employees.
The latest layoffs mark the second round of job cuts at Microsoft this year, following a smaller wave in January that affected less than one percent of employees.
During Microsoft's Q3 earnings call in late April, CFO Amy Hood said the company was "reducing layers with fewer managers" as part of its push for agility and high-performing teams.
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