Microsoft Announces Workforce Reduction

Microsoft is set to reduce its global workforce by 4%, impacting approximately 9,000 roles across various teams, including the Xbox gaming division and King, the Candy Crush developer. This move follows previous cuts in January, May and June, bringing the total job losses to over 15,000 this year. The company aims to streamline operations, reduce management layers, and increase agility.

The layoffs are part of a broader strategy to focus on AI, efficiency, and long-term innovation, with an $80 billion investment in expanding AI capabilities and data centres. Microsoft is reallocating resources towards AI product development, cloud infrastructure and strategic growth markets. Despite these cuts, Microsoft reported strong financial results, with $26 billion in profit last quarter.

The reductions also align with similar moves by tech competitors to streamline corporate structures and improve decision-making speed. Impacted employees will receive severance packages, healthcare coverage, and job placement assistance.