Microsoft is cutting approximately 6,000 jobs, or around 3% of its workforce, to increase the span of control for managers, seeking a flatter organization. This follows similar trends in the tech industry, with other major players like Amazon and Google also restructuring management hierarchies to optimize efficiency. Insiders indicate that this shift is necessary as the company has accumulated excessive management layers, often leading to inefficiency and poor performance among managers who were promoted from technical roles. The reorganization is also part of Microsoft's broader investment in AI and technology advancements.
Microsoft's decision to cut around 6,000 jobs aims to increase the span of control per manager, aligning with industry trends toward flatter management structures.
The company is simulating a more efficient workforce by reducing management layers, as several tech companies, including Google and Amazon, have previously done.
Insiders indicate the restructuring is a welcome change, citing an excess of managers that may not effectively lead, contributing to inefficiencies in development.
The prior aim of promoting skilled engineers into managerial roles resulted in an overabundance of layers, detracting from their original technical contributions.
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