Microsoft Corporation has executed a further round of job cuts, affecting several hundred employees, just weeks after initiating its largest workforce reduction in years. The latest development underscores the ongoing recalibration within the technology sector, where companies are simultaneously pursuing aggressive investment in artificial intelligence (AI) while restructuring to improve cost efficiency.
According to a regulatory notice filed in Washington state and reviewed by Bloomberg, more than 300 roles were eliminated on Monday. A spokesperson for Microsoft confirmed that the reduction forms part of the same broader restructuring strategy that led to approximately 6,000 redundancies last month.
“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson stated.
The AI-driven transformation sweeping across the tech industry is reshaping workforce demands. Companies are increasingly reallocating resources to AI-focused roles while leveraging automation and AI capabilities to streamline operations and reduce headcount.
Microsoft, alongside other technology leaders such as Meta Platforms, has been vocal in its endorsement of AI-powered software development tools. These tools, which support coding and operational efficiency, are being credited with accelerating development timelines and reducing labour needs. Just last week, Salesforce reported that its internal use of AI had enabled it to limit new hires.
While Microsoft’s previous layoffs disproportionately impacted software engineering roles, the specific departments or functions affected by the most recent cuts have not been disclosed. As of June 2024, Microsoft employed approximately 228,000 full-time staff globally, with around 55% based in the United States.
-South China Morning Post
