Microsoft says it solves almost 3% of its total workforce.
The tech giant did not reveal the total amount of lost employment, but it would bring it to about 6,000. Microsoft employed 228,000 full-time workers as of June last year. Approximately 55% of these workers were in the United States.
Microsoft, based in Redmond, Washington, said layoffs will take place across all levels and regions but will focus on reducing the level of management. A notification occurred on Tuesday.
“We continue to implement the organizational changes necessary to maximize our company to succeed in a dynamic market,” the company’s statement reads.
Microsoft announced fewer rounds of performance-based layoffs in January. However, the 3% reduction will be Microsoft’s biggest layoff since early 2023. This has joined other tech companies that have cut 10,000 workers, almost 5% of the workforce, and are reducing expansion in the pandemic era.
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The latest layoff comes just weeks after Microsoft reported strong sales and profits that beat Wall Street expectations from January 3rd to March. Microsoft has surpassed Wall Street revenue estimates for the last four consecutive quarters.
Amy Hood, the company’s chief financial officer, said in an April revenue call that the company is focusing on “building and agile high-performance teams by reducing the number of layers with fewer managers.” She also said that counties in March were 2% higher than a year ago, a slight decline compared to the end of last year.