
Microsoft recently announced a strategic organizational restructuring, which will result in a workforce reduction of approximately 3%, affecting around 6,000 employees across all levels, teams, and regions within the company.
Earlier this year, in January, CEO Satya Nadella had indicated plans to recalibrate the company’s sales execution strategy in response to the shifting demands of a market increasingly driven by artificial intelligence. Microsoft emphasized that this round of layoffs is not performance-related, but rather aimed at streamlining managerial layers to enhance operational efficiency and better align with strategic objectives.
As of the end of June 2024, Microsoft employed approximately 228,000 people globally. Under the newly announced reduction, about 1,985 positions at the company’s Redmond, Washington headquarters will be eliminated, with 1,510 of those being office-based roles.
This workforce adjustment follows a smaller-scale layoff earlier this year and is primarily intended to optimize the structure of management teams to maintain agility and support current market-driven strategies. However, Microsoft did not disclose whether artificial intelligence would be used to replace human roles or to augment productivity through AI-driven applications.