Microsoft to cut 9,000 jobs in second round of layoffs this year
Microsoft revealed its plan on Wednesday, saying it will reduce its total workforce by less than four percent.
Officials say Microsoft had approximately 228,000 employees as of June 30, 2024, suggesting that roughly 9,000 people will be laid off.
A Microsoft spokesperson says, "We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace."
The move follows Microsoft's announcement in May that it would eliminate about 6,000 jobs.
The firm says it is aiming to enhance efficiency by streamlining its operations, including downsizing its managerial staff.
US media outlets report that Microsoft needs to focus its resources on certain areas amid spiraling spending associated with AI development.
They add that the reduction plan may reflect increased operational efficiency due to the introduction of AI tools.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asahi Shimbun
2 hours ago
- Asahi Shimbun
Japan tech giant SoftBank Group sees better fortunes on surging AI stocks
The logo of Japanese mobile provider SoftBank is seen at its shop in Tokyo on June 14, 2018. (AP Photo) Japanese technology conglomerate SoftBank Group Corp. posted a 421.8 billion yen ($2.9 billion) profit in the April-June quarter, rebounding from a loss a year earlier as its investments benefited from the craze for artificial intelligence. Quarterly sales at Tokyo-based SoftBank Group, which invests heavily in AI companies like Nvidia and Open AI, rose 7% to 1.8 trillion yen ($12 billion), the company said Thursday. SoftBank's loss in April-June 2024 was 174 billion yen. The company's fortunes tend to fluctuate because it invests in a range of ventures through its Vision Funds, a move that carries risks. The group's founder Masayoshi Son has emphasized that he sees a vibrant future in AI. SoftBank has also invested in Arm Holdings and Taiwan Semiconductor Manufacturing Co. Both companies, which produce computer chips, have benefitted from the growth of AI. 'The era is definitely AI, and we are focused on AI,' SoftBank senior executive Yoshimitsu Goto he told reporters. 'An investment company goes through its ups and downs, but we are recently seeing steady growth.' Some of SoftBank's other investments also have paid off big. An example is Coupang, an e-commerce company known as the 'Amazon of South Korea,' because it started out in Seoul. Coupang now operates in the U.S. and other Asian nations. Goto said preparations for an IPO for PayPay, a kind of cashless payment system, were going well. The company has already held IPOs for Chime, a U.S. 'neobank' that provides banking services for low-credit consumers, and for Etoro, a personal investment platform.
Japan Today
3 hours ago
- Japan Today
Sony hikes profit forecasts after strong quarter for games
Sony expects its annual earnings to be boosted by the gaming sector By Katie Forster and Kyoko Hasegawa PlayStation-maker Sony raised its annual profit forecasts on Thursday, citing strong performance in its key gaming business and a smaller-than-expected negative impact of U.S. trade tariffs. The Japanese electronics and entertainment conglomerate said "user engagement continued its strong momentum" in the video game sector. Its shares surged more than six percent in Tokyo after the announcement. Monthly active users in June and total gameplay hours on PlayStation consoles in the April-June quarter both increased six percent year-on-year, it said. It added that "the situation surrounding the additional US tariffs is still fluid, and we intend to continue to monitor it and take action to minimize its impact". "The impact of the additional US tariffs on operating income is estimated to be approximately 70 billion yen, a decrease of 30 billion yen from the previous forecast." The company hiked its net profit forecast for the current 2025-26 financial year to 970 billion yen, up from the previous estimate of 930 billion yen. But even the higher forecast would not top the record net profit of 1.1 trillion yen that Sony logged in the previous financial year. Atul Goyal, an equity analyst at Jefferies, said ahead of the earnings release that the massively anticipated global release of the game "Grand Theft Auto VI" in May 2026 "could lead to peak game profits" for Sony. GTA VI, which will be released on the PlayStation 5 and Microsoft's XBox, will be set in Miami-like Vice City and features a playable female protagonist for the first time. The PlayStation 5, which launched in 2020, is entering a "late" stage of the usual lifecycle for a console, Goyal said. "Sony's outlook hinges on navigating tariff headwinds near-term, leveraging GTA6's blockbuster potential... and cyclical console risks," he said. "A sensors spin-off could transform valuation, while music provides steady growth and pictures provides stability." Music streaming is an important business pillar for Sony, which has an impressive back catalogue and a current roster that includes artists such as Beyonce and Lil Nas X. The Japanese giant, which saw net profit jump 23 percent on-year in this year's April-June quarter, also raised its operating profit forecast on Thursday. Sony last month said it had bought a strategic 2.5 percent stake in Japanese game franchise giant Bandai Namco, which owns "Gundam" and arcade classic "Pac-Man", with a view to growing its anime business. With the 68 billion yen transaction, the companies plan "to create new and emotionally moving experiences for fans", they said in a joint statement. © 2025 AFP
Japan Times
5 hours ago
- Japan Times
Airbnb warns of slowing growth despite strong Q2 earnings
Airbnb issued a better-than-expected outlook for the third quarter as it saw encouraging summer travel demand, but warned that growth rates may not keep up later this year due to tough year-ago comparisons. For the three months ending Sept. 30, the short-term rental company said growth on the basis of nights and seats booked — a closely watched metric — is expected to be "relatively stable' from the 7.4% achieved in the second quarter, Airbnb said in a shareholder letter on Wednesday. That's close to the 7% increase that Wall Street was projecting. Third-quarter revenue is expected to be in the range of $4.02 billion to $4.1 billion, the mid-point of which also exceeds the average analyst estimate. "As we look ahead to Q3, we're encouraged by current demand trends,' Airbnb said in the letter, adding that it saw an acceleration of nights-booked growth in July, particularly in North America. Yet, it expects tougher year-over-year comparisons toward the end of the current period and into the fourth quarter, "putting pressure on growth rates later in the year.' Airbnb's results were surprisingly strong in the second half of last year, as travelers ultimately booked trips that they had delayed. Shares of Airbnb fell 6.3% in extended trading. On Wednesday, Airbnb also announced a new share repurchase program of as much as $6 billion, after it beat expectations to generate $1 billion in free cash flow in the second quarter. Airbnb's report follows the lukewarm forecast provided by online travel peer Booking, which warned that worsening economic uncertainty will weigh on travel demand. Airbnb's second-quarter results otherwise broadly exceeded expectations from "solid growth in nights stayed,' the company said. Gains were especially strong in Latin America and Asia Pacific — registering double digits — as the company saw more first-time bookers in Brazil and Japan following an effort on Airbnb's part to adapt the product and marketing to local tastes. Meanwhile, reservations by North American travelers contributed low single-digit growth in nights booked despite some improvement in demand during the period, mostly driven by domestic travel. The slow gains weighed on broader results, Airbnb said: excluding this region, which makes up about 30% of total nights and seats booked, total nights would have grown double-digits during the quarter. Overall, total nights and seats booked grew 7.4% to 134.4 million in the second quarter. Revenue was $3.1 billion, exceeding expectations for $3.03 billion. Net income was $642 million. Analysts were expecting $599.3 million. The company did not break out results for its Experiences and new a la carte Services offerings that it launched in May, which allows travelers to book tour activities as well as hire professionals such as chefs, personal trainers or photographers. But it said that awareness is growing and guest feedback has been positive early on. It has also received "significant interest from potential activity hosts,' with more than 60,000 applications submitted since launch. These new verticals will help add $1 billion or more in revenue annually, Chief Executive Officer Brian Chesky has said, though it will take a few years for them to scale up. Airbnb restated the amount it plans to invest into the new businesses, with a new pledge of $200 million. That figure is in line with the lower bound of the range it provided investors in February. The impact of these investments on earnings margins will be most pronounced in the second half of this year, it has said. The launch of new businesses has also put the company in a "better position' to reward its customers through a loyalty program, Chief Business Officer Dave Stephenson said in an interview last week, saying that one is under consideration for the future. Chesky elaborated further on the opportunity when asked on an earnings call with analysts on Wednesday, and reiterated that Airbnb will not offer a points program like its hospitality competitors. "A loyalty or membership program is a very, very compelling thing for Airbnb,' he said. "I do think we are sometimes at a competitive disadvantage vis-a-vis OTAs and hotels because they have a lot of programs that we don't. So I think there is a lot of upside if we were to have a program.' "If we were to do something, I don't think it would be a traditional points program,' he added. "I think it would be something much more interesting and novel. I absolutely think you should see something from us in the future. Not imminently but in the future.'
