Microsoft on July 6 announced another major restructuring exercise, eliminating around 4,800 roles, or about 2.1 per cent of its global workforce, as the technology giant sharpens its focus on artificial intelligence, cloud computing and high growth business areas. The announcement was made by Amy Coleman, Executive Vice President and Chief People Officer, in a message to employees published on the company’s official blog.
According to Microsoft, the move is part of a broader transformation aimed at aligning people, investments and resources with the company’s evolving priorities. The layoffs will primarily affect its Commercial and Xbox divisions as the company responds to rapid changes in technology, customer expectations and business models.
The company said it has tried to minimise job losses by redeploying employees wherever possible. Over the past year, Microsoft has shifted more than 4,000 employees into new roles, including around 500 during the current month. It also plans to transfer four gaming studios under new management to preserve their intellectual property and ongoing projects. Additionally, more than 30 per cent of eligible employees opted for the company’s recent voluntary retirement programme.
Explaining the rationale behind the restructuring, Microsoft said the technology landscape is evolving faster than ever, requiring organisations to rethink how products are built, delivered and supported. The company noted that artificial intelligence is changing the nature of work by automating routine tasks while creating demand for new skills and capabilities.
Microsoft stressed that the latest workforce reduction is not simply a cost cutting exercise but part of a long term strategy to become a more agile and AI focused organisation. The company reiterated its commitment to supporting affected employees with respect and helping them transition wherever possible, while continuing to invest aggressively in technologies that will shape the next phase of digital transformation.
