View source for News/Microsoft Lay offs Continue

{{News
|seo_title=Microsoft Lay offs Continue
|seo_keywords=Microsoft
|image=Microsoft.png
|tags=Microsoft
|date=2025-05-14T09:23:59.000Z
|sources={{NewsSource
|source=Games Industry
|url=https://www.gamesindustry.biz/microsoft-to-lay-off-3-of-employees
|article=News/Microsoft Lay offs Continue
}}
|author=Andura
|category=Business
|content=[[Companies/Microsoft|Microsoft]] has announced plans to reduce its workforce by less than 3%, a move that will impact approximately 6,000 employees across various departments and regions. The decision comes as the tech giant intensifies its investments in artificial intelligence while simultaneously aiming to maintain operational efficiency and profitability.

The company confirmed the layoffs on Tuesday, describing them as part of broader organizational restructuring intended to align staffing with evolving business priorities. This marks the most significant workforce reduction at Microsoft since early 2023, when the company cut around 10,000 positions. While a smaller round of job cuts occurred in January, those were reportedly tied to performance reviews and are unrelated to this latest action.

“These organizational changes are part of our ongoing efforts to ensure we are positioned for long-term success in a rapidly changing market,” a Microsoft spokesperson said in a statement to the media.

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The reduction comes despite Microsoft’s recent financial performance, which has exceeded expectations. Strong growth in its Azure cloud division helped the company post robust quarterly earnings, offering reassurance to investors amid broader economic uncertainty. However, the cost of expanding its AI infrastructure is starting to impact margins, particularly within its cloud business.

In the March quarter, Microsoft Cloud’s profit margin dropped to 69%, down from 72% in the same period last year. The company has committed to spending approximately $80 billion in capital expenditures this fiscal year, largely to scale up its data center capacity in support of AI services.

Industry analysts interpret the move as a calculated response to margin pressures resulting from Microsoft's aggressive push into AI. “These layoffs suggest Microsoft is carefully managing the financial strain from its substantial AI investments,” said Gil Luria, an analyst at D.A. Davidson.

Microsoft, which employed 228,000 people as of June 2024, routinely reallocates resources and adjusts staffing levels to focus on strategic growth areas. The company joins other major tech firms such as Google in reshaping their workforces, as the sector shifts more heavily toward artificial intelligence while seeking to streamline other operations to protect bottom lines.
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