Microsoft is preparing to cut approximately 6,000 jobs globally—around 3% of its total workforce—as part of a sweeping restructuring and cost-cutting initiative. With a global headcount of 2.28 lakh employees as of June 2024, this marks the tech giant’s most significant round of layoffs in over two years. The reorganisation will impact various departments, including LinkedIn, according to media reports, as the company seeks to streamline operations, flatten management hierarchies, and improve overall efficiency.
The move follows Microsoft’s last major layoff in early 2023, which affected 10,000 roles, particularly in the AR headset and hardware divisions. Unlike previous rounds driven by external pressures, the current cuts are part of a strategic realignment to sharpen the company’s focus on high-growth areas such as cloud computing and artificial intelligence. Microsoft has ambitious plans to invest around $80 billion into AI and Azure-supporting data centres, underscoring that the layoffs are not a result of financial strain, but rather a recalibration of priorities for long-term sustainability.
Adding to the intensity of its performance-driven culture, Microsoft recently implemented a new performance management policy that gave employees just five days to accept stricter benchmarks or voluntarily exit. The policy targets underperformers—those with zero or only 60% rewards—with immediate consequences, highlighting the company’s renewed focus on accountability and high performance.
As Microsoft doubles down on innovation, particularly in AI, the restructuring signals its commitment to staying agile and competitive in a fast-evolving tech landscape.
