Microsoft has announced it will lay off about 9,000 employees worldwide as part of a second round of job cuts this year aimed at streamlining operations and cutting costs.
The latest layoffs represent roughly 4% of Microsoft’s global workforce, which totals around 228,000 people as of June 2024. The cuts will affect various teams across different regions and levels, with sales staff and Xbox gaming divisions among those impacted. This follows an earlier round in May that saw 6,000 jobs cut, mostly in product and engineering roles.
Microsoft says these changes are part of broader efforts to simplify management layers and improve efficiency. A company spokesperson said, “We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace”.
The layoffs come amid ongoing restructuring across the tech industry, with many firms reducing staff due to economic uncertainty and rising investments in artificial intelligence. For example, Google also cut hundreds of jobs earlier this year in its Platforms and Devices division.
Microsoft’s Chief Commercial Officer, Judson Althoff, is set to take a two-month sabbatical starting July, but the company confirmed this was planned before the layoffs and that he will return in September.
This second wave of job cuts shows the challenges even major tech companies face as they adapt to changing market conditions and focus on cost management. Industry watchers expect such restructuring to continue across the sector for the foreseeable future.
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