Microsoft Cuts 9,000 Jobs in Fourth Round of Layoffs
(MENAFN) Microsoft revealed on Wednesday that it will be cutting 9,000 positions, representing approximately 4% of its global workforce across different teams, regions, and levels of experience, according to media.
This marks the fourth major round of layoffs this year. In January, the company reduced its workforce by 1%, followed by over 6,000 job cuts in May, and another 300 layoffs in June.
In total, Microsoft has eliminated 10,000 positions in 2023 alone. As of June 2024, the company employed 228,000 people globally.
The 2014 acquisition of Nokia's devices and services division led to the tech giant's largest-ever reduction of 18,000 jobs, a move that may still hold the record for the most significant corporate layoff.
Microsoft's decision to trim staff is part of an effort to streamline its organizational structure. The company plans to reduce managerial layers, making leadership more agile, a shift reminiscent of its May layoffs.
Phil Spencer, Microsoft's gaming CEO, emphasized this strategy in a memo to employees within the division, writing, “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.”
Despite the layoffs, Microsoft's financial performance exceeded market expectations, with the company reporting nearly $26 billion in net income on $70 billion in revenue for the most recent quarter.
Currently, Microsoft remains the second most valuable company in the world, holding a market capitalization of $3.66 trillion. However, it recently ceded the top spot to Nvidia.
As of 1510GMT Wednesday, the company’s stock rose by 0.11% to $492.59.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
