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BUSINESS
Reports suggest that around 6,000 employees representing approximately 3% of the company's global workforce, may be affected,
Microsoft has announced a major restructuring effort, aimed at streamlining its operations by eliminating unnecessary management layers and leveraging the benefits of new technology. This move comes amid reports that the tech giant is laying off thousands of workers. While Microsoft has not publicly disclosed the exact number of job cuts, US media reports suggest that around 6,000 employees may be affected. This figure represents approximately 3% of the company's global workforce.
In the state of Washington, where Microsoft is headquartered, the impact is significant, with around 1,985 workers expected to lose their jobs. This information is based on a filing posted on the state's labour affairs agency. A Microsoft spokesperson explained the company's recent moves in an emailed statement. "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," the spokesperson said.
This restructuring effort is part of Microsoft's strategy to adapt to the rapidly changing tech landscape, particularly as it advances its plans to integrate AI across all its products. By streamlining its operations, the company aims to empower its employees to focus on more meaningful work, leveraging new technologies and capabilities to drive innovation and growth.
Microsoft recently reported strong quarterly results for January to March, driven by its cloud computing and AI businesses. The company, celebrating its 50th anniversary, was an early adopter of AI and invested heavily in the technology after the launch of ChatGPT in 2022.
Meanwhile, Microsoft earlier introduced an AI-generated version of Quake II, playable in a browser via Copilot, showcasing its Muse AI model's capabilities. This tech demo demonstrates the potential of AI in game development, such as prototyping and improving classic titles, although the current version is basic and limited.