Microsoft announced layoffs of nearly 3% of its workforce, impacting about 6,000 of its 228,000 employees, with 55% based in the US. The cuts, announced Tuesday, span all levels and regions, focusing on reducing management layers to boost agility. This follows a smaller performance-based layoff in January and a 2023 cut of 10,000 jobs (5%). Despite strong January–March earnings beating Wall Street expectations, CFO Amy Hood emphasized building high-performing teams, noting a 2% headcount rise from last year but a slight decline from December. The layoffs reflect Microsoft’s response to a turbulent tech sector and US economy, mirroring industry pullbacks from pandemic-era expansions. Based in Redmond, Washington, Microsoft aims to streamline operations while maintaining innovation in cloud computing and AI. The cuts, among the largest since 2023, underscore challenges in balancing profitability and growth amid trade uncertainties and rising costs. Affected employees face a competitive job market, while Microsoft navigates investor expectations and economic headwinds.
