Microsoft’s Second-Biggest Layoffs Hit Over 6,000 Employees Amid AI Push
Microsoft is reportedly laying off over 6,000 employees, affecting 3% of Microsoft’s global workforce, span across the company.
The company targets structural change to the company through the layoffs.
Also Read, Microsoft asks its employees to stop using Deepseek AI
The company is focusing on hiring AI talent workforce as Microsoft continues to invest heavily in new AI ideas. CEO Satya Nadella previously revealed that AI now writes up to 30% of code in some Microsoft projects, a shift in current workforce dynamics.
According to Business Insider, laid off employees will stay on the payroll for the 60 days after their termination. Further, the affected staff will also be reportedly eligible for rewards and bonuses.
Additionally, Microsoft has introduced a two-year rehire ban for employees forced out due to performance issues, alongside a new performance management system that tracks desirable employee departures.
The layoffs come despite Microsoft’s strong balance sheets, with the company reporting $25.8 billion in quarterly net income in April. However, the layoffs signal a shift in corporate jobs, they also raise concerns about job security for AI-driven future.