OAN Staff Abril Elfi
3:33 PM – Tuesday, May 13, 2025
Microsoft has announced that the U.S. multinational corporation and technology conglomerate will soon be laying off nearly 3% of its global workforce — affecting around 7,000 employees.
On Tuesday, the company announced that it is laying off employees across all levels and teams. However, the company noted that management-level positions are mostly targeted.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement to CNBC.
The corporation also dismissed a portion of its staff, back in January, due to “underperformance,” but the most recent cuts are unrelated — and rather, more so aimed at reducing managerial layers, according to the outlet.
As artificial intelligence (AI) solidifies its position as a primary growth driver for Microsoft, major tech companies have strategically invested in AI while implementing cost-cutting measures in other areas to sustain profit margins.
The company plans to invest up to $80 billion in AI infrastructure during fiscal year 2025.
By increasing the number of direct reports per manager, Microsoft seeks to reduce bureaucracy and improve decision-making processes, the company added. Media reports indicate that Google has also executed substantial workforce reductions over the past year, aiming to streamline expenses and prioritize advancements in artificial intelligence.
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