Microsoft has announced plans to cut several thousand jobs. According to the company, the cuts will affect less than three percent of its global workforce. Microsoft did not provide an exact number. As of the most recent available data in late June 2024, the software giant employed around 228,000 people worldwide, including approximately 126,000 in the United States. Three percent of the total workforce would equate to about 6,800 jobs.
A company spokesperson told the financial service Bloomberg that the layoffs will impact various regions and levels of employees. This is therefore not a measure concentrated on specific areas, but rather a more broadly implemented staff reduction. Back in early 2023, Microsoft had already cut around 10,000 jobs. The new reduction comes at a time when many technology companies are scaling back their workforces after significant expansion during the COVID-19 pandemic.
During the pandemic, many tech firms significantly increased their staffing levels due to a sharp rise in demand. The newly announced cuts are linked to adapting to changing economic conditions and strategic realignments within the companies. Microsoft, too, had benefited from strong growth during that period and had expanded its capacities accordingly.
In parallel with the layoffs, Microsoft is currently investing heavily in expanding its infrastructure for artificial intelligence. The company plans to spend around 80 billion US dollars in the current fiscal year, which runs until the end of June 2025. A key focus of these investments is in data centers, which are necessary to support the growing use of AI technologies. The goal is to create a technological foundation for future applications and to strengthen the company’s competitive position.
The decision to cut jobs thus takes place in a field of tension between staff reduction and strategic investment. While jobs are being eliminated on the one hand, capital is simultaneously being directed toward future technologies. Microsoft is continuing along a path that other major tech companies have also followed in recent months. Through these measures, the company is adapting to new market demands and economic developments.
