Microsoft Fires Hundreds More Workers Amid AI-Fueled Growth, Calls It Positioning The Company For 'Success'
Microsoft has announced additional layoffs, cutting over 300 jobs just weeks after its largest round of layoffs, which affected around 6,000 employees. The company aims to position itself for success in a competitive market, particularly focusing on AI advancements. Microsoft, valued at $3.43 trillion, continues to invest heavily in AI while reducing non-AI-related roles. Despite the layoffs, Microsoft shares saw a slight increase during regular trading but dipped in after-hours trading.
Just weeks after announcing its largest round of layoffs in years, Microsoft Corporation MSFT has decided to eliminate hundreds of additional jobs.
What Happened: On Monday, more than 300 Microsoft employees were told that their roles had been cut, reported Bloomberg, citing a Washington state notice.
A Microsoft spokesperson confirmed this development to the publication, saying, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."
These layoffs follow the roughly 6,000 cuts Microsoft announced last month.
As per the report, while the specific roles affected have not been determined, previous layoffs primarily impacted software engineers.
The tech giant had about 228,000 full-time employees as of June 2024, out of which 55% were based in the U.S.
Why It's Important: Microsoft is currently the most valuable company in the world with a $3.43 trillion market capitalization.
The cuts come as Microsoft and other tech giants like Meta Platforms, Inc. META double down on artificial intelligence, investing billions while trimming non-AI-related headcount.
Previously, Microsoft CEO Satya Nadella said that 20% to 30% of the company's code base is now being written with the help of AI.
Price Action: Microsoft shares rose 0.35% during Monday's regular trading session but slipped 0.26% in after-hours trading, according to Benzinga Pro data.
