Microsoft is continuing its job cutting spree. It hasn’t been long since the company announced its intention to let go three per cent of its global workforce, that is, about 6,000 employees, in an endeavour to streamline its operations, eliminate management hierarchies, cut costs and restructure. The news had grabbed headlines for being probably the largest round of job cuts at the tech giant in over two years.
Satya Nadella, CEO, Microsoft, had addressed the workforce internally following the cuts last month and clarified that the decision was not based on any failure of individuals or weak performance. Rather, the company was simply repositioning itself to meet new business priorities. This includes a sharper emphasis on AI integration across products and services, a plan that had existed for a while but had gained momentum only recently.
Now, in this latest round, at least 300 employees, including research scientists, lawyers, software engineers, marketers and product managers have reportedly been impacted.
As per reports, these cuts have been planned to help Microsoft achieve success in a rapidly-changing market.
Many tech firms have resorted to cutting jobs and embracing AI tools in a big way to save costs.
Those in the software space have come to realise that using AI-assisted tools does help accelerate software development and achieve more with smaller teams.
It is a known fact that Microsoft has been investing heavily in its AI ecosystem, particularly through its Copilot assistant, which is being widely adopted by enterprise clients. With the price of Copilot being fixed at $30 per user per month, it is expected to earn significant revenue.
