As the IT giant strives to control expenses amid significant investments in artificial intelligence infrastructure, Microsoft said on Wednesday that it will lay off about 4% of its personnel in the most recent job layoffs. As of June 2024, the corporation employed over 228,000 people globally. In May, it announced layoffs that will effect about 6,000 individuals.
According to a Bloomberg News story last month, it intended to eliminate thousands of positions, mostly in the sales sector. For its fiscal year 2025, the Windows manufacturer has committed to capital expenditures of $80 billion.
Its margins have been negatively impacted by the skyrocketing costs of growing its AI infrastructure, though, and its cloud margin for the June quarter is predicted to decline from the previous year.
Microsoft announced on Wednesday that it will simplify its products, processes, and jobs while reducing organisational levels and the number of managers. Earlier on Wednesday, the layoffs were originally reported by the Seattle Times. Separately, Bloomberg News revealed that Microsoft’s King subsidiary, located in Barcelona and home to the Candy Crush video game, is laying off around 200 employees, or 10% of its workforce.
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