Microsoft layoffs
Earlier this month, Microsoft confirmed it would reduce its global workforce by around 4%. The company had already announced in May that about 6,000 roles would be cut. Microsoft, which had about 228,000 staff as of June 2024, also said it would streamline internal structures by reducing the number of managers and simplifying how teams and products are organised.
Also Read: Tech layoffs: Amazon, Intel to cut more jobs amid AI push, cost control 'Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognised and rewarded at levels never seen before. And yet, at the same time, we've undergone layoffs' Nadella said in his memo.
Microsoft's AI-driven strategy
While noting the mission for the upcoming fiscal year, Nadella highlighted the transformational shift at Microsoft. 'When Bill (Gates) founded Microsoft, he envisioned not just a software company, but a software factory, unconstrained by any single product or category. That idea has guided us for decades. But today, it's no longer enough,' Nadella said.'It's not just about building tools for specific roles or tasks. It's about building tools that empower everyone to create their own tools. That's the shift we are driving—from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve,' he added.
Cost saving
Microsoft's chief commercial officer, Judson Althoff, revealed during a presentation earlier this month that AI is improving productivity across departments, from sales and customer service to software engineering.
Althoff said that AI helped Microsoft save over $500 million in its call centres alone last year and led to higher employee and customer satisfaction. While it's not clear whether the recent jobs were directly taken over by AI, Nadella had previously said that artificial intelligence writes between 20% to 30% of the code in the company's repositories.
Also Read: Tech layoffs: Intel expects to shrink workforce to 75,000 by year end
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