Microsoft fires more employees as part of restructuring exercise
Microsoft is not done with layoffs. After eliminating 10,000 roles in January this year, the company has decided to downsize further. According to GeekWire, the tech giant will axe 276 employees in its home state of Washington. The layoffs are considered a part of Microsoft's typical restructuring at the beginning of a new fiscal year. It did something similar last year as well.
Why does this story matter?
Microsoft is the last company you would expect to fire employees now. The company is leading the AI arms race and many expect it to strengthen its position further in the coming months. So why now? Microsoft would say that cuts are required to keep their business efficient. The firm's employees may not be happy with constant cuts, though.
Customer service, support, and sales staff are impacted
Staffers belonging to customer service, support, and sales are impacted by Microsoft's decision. Out of the 276 employees, 66 worked virtually. "Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners," Microsoft said in a statement.
Microsoft fired employees around the same time last year
For some, Microsoft's decision to axe employees right after the close of the fiscal might come as a surprise. However, the company fired around 1% of its workforce in July 2022 as well, soon after the beginning of the fiscal year 2023. At the time, the tech giant attributed it to a realignment of business groups and roles.
Microsoft hired a lot during the pandemic
Microsoft's new round of layoffs comes six months after the company's mass culling of the workforce earlier this year. It was at a time when large technology companies resorted to reducing their headcount in an effort to deal with uncertain economic conditions. Microsoft, like its peers, had hired heavily during the pandemic, expanding its workforce by 36% between June 2020 and June 2022.
The layoffs are part of strategic streamlining
It is unclear whether the job cuts are part of a larger round of layoffs. We may see more cuts in the future as the company pools its resources to focus on more important areas. Sales teams seem to have lost their charm recently. The company's focus currently lies in artificial intelligence and related fields.
