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Canada News.Net
16 hours ago
- Business
- Canada News.Net
Microsoft lays off 4 percent amid AI push, joins wider tech cutbacks
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation AI capabilities begins to reshape workforces across the industry. The company said this week it will lay off nearly 4 percent of its global workforce—roughly 9,000 jobs—as it looks to streamline operations and control costs. With around 228,000 employees as of June 2024, Microsoft had already trimmed headcount in May, affecting about 6,000 workers. Bloomberg News reported last month that the company was planning additional cuts, particularly in sales. The layoffs come as Microsoft commits to massive investments in AI. The company has pledged US$80 billion in capital spending for fiscal 2025, much of it earmarked for building and scaling AI infrastructure. But these investments have begun to weigh on profitability—its June quarter cloud margins are expected to shrink compared to last year. To offset these pressures, Microsoft said it would "reduce organizational layers with fewer managers" and streamline its products, procedures, and roles. The Seattle Times was the first to report the layoffs. Separately, Bloomberg News reported that Microsoft's King division, based in Barcelona and known for developing the Candy Crush video game, is also cutting about 10 percent of its staff, or around 200 employees. Microsoft confirmed to Reuters that the gaming division had been affected by the layoffs, though it clarified that the job cuts do not impact the majority of the unit. Other major tech companies making aggressive AI bets have also implemented job cuts. Meta, the parent company of Facebook, said earlier this year it would reduce about 5 percent of its "lowest performers." Alphabet's Google has laid off hundreds of workers in recent months, and Amazon has trimmed roles across several business lines, including its books division, devices and services, and communications teams. Across Corporate America, a combination of economic uncertainty and rising costs has prompted companies to restructure, streamline, and prepare for further financial pressure. Microsoft's latest move underscores how even the most profitable players are making hard choices to sustain their AI ambitions.
Business Recorder
3 days ago
- Business
- Business Recorder
Microsoft ‘ends' operations in Pakistan after 25 years
Tech software giant Microsoft has shut down all operations in Pakistan, according to media reports on Thursday. The report comes just a day after Seattle Times reported that Microsoft had announced it was laying off as much as 4%, or roughly 9,100, of its employees in the largest round of job cuts since 2023. The tech giant was planning to cut thousands of jobs, particularly in sales, according to a Bloomberg News report in June. Microsoft had also announced layoffs in May, which affected around 6,000 employees. According to reports, Microsoft has never had a full presence in Pakistan — only liaison offices that served enterprise, government, education, and consumer customers. Pakistan's shrinking tech landscape: global companies exit amidst capital crunch Describing the decision as a 'troubling sign' for Pakistan's future, former president Arif Alvi said Microsoft chief Bill Gates once had plans to make a major investment in Pakistan. However, 'regime change upended those plans, and the promise of investment slipped away. By October 2022, Microsoft chose Vietnam for its expansion, a decision in which they had initially favored Pakistan. The opportunity was lost,' he wrote in a post on X. 'Pakistan now spirals in a whirlpool of uncertainty. There is increasing joblessness, our talent is migrating abroad, purchasing power has reduced, economic recovery in the 'awami' context feels like a distant and elusive dream,' former president added. Meanwhile in a post on LinkedIn, Microsoft Pakistan's former founding country manager Jawwad Rehman said, 'This is more than a corporate exit.' 'It's a sobering signal of the environment our country has created.. one where even global giants like Microsoft find it unsustainable to stay. It also reflects on what was done (or not done) with the strong foundation we left behind by the subsequent team and regional management of Microsoft.' Habibullah Khan, founder and CEO of design studio Penumbra, said on X the decision came as no surprise. Microsoft's revenue from Pakistan would have been $50 million, which Khan estimated at .018% of Microsoft's global revenue, coupled with the fact that they have been cutting costs and laying people off. He explained that Microsoft 'supplies from Turkey and invoices from Ireland' and 'had dramatically reduced head count in Pakistan already, so their relationship with Pakistan was very tenuous'. 'Microsoft reviewing future of its liaison office in Pakistan' The global pivot from on-premise software (transactional deals) to Software-as-a-Service (SaaS) (recurring revenue) continues to reshape how technology firms structure their international operations. Microsoft is no exception. Pakistan's e-commerce sector faces operational costs surge amid new taxes Over the past few years the company has shifted licensing and commercial-contract management for Pakistan to its European hub in Ireland, while day-to-day service delivery here has been handled entirely by its certified local partners. This was stated by the IT ministry in a statement issued later during the day. 'Against that backdrop, we understand Microsoft is now reviewing the future of its liaison office in Pakistan as part of a wider workforce-optimisation programme. 'This would reflect a long-signalled strategy, consolidating direct headcount and moving toward a partner-led, cloud-based delivery model, rather than a retreat from the Pakistani market,' it said. The ministry said the government would continue to engage Microsoft's regional and global leadership to 'ensure that any structural changes strengthen, rather than diminish, Microsoft's long term commitment to Pakistani customers, developers and channel partners'.
Time of India
3 days ago
- Business
- Time of India
Microsoft to cut about 4% of jobs amid hefty AI bets
Microsoft will lay off nearly 4% of its workforce, the company said on Wednesday, in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence infrastructure. The company, which had about 228,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers. It was planning to cut thousands of jobs, particularly in sales, Bloomberg News reported last month. The Windows maker had pledged $80 billion in capital spending for its fiscal year 2025. However, the soaring cost of scaling its AI infrastructure has weighed on its margins, with its June quarter cloud margin expected to shrink from last year. Microsoft said on Wednesday it planned to reduce organizational layers with fewer managers and streamline its products, procedures and roles. The Seattle Times first reported on the layoffs earlier on Wednesday. Separately, Bloomberg News reported Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10% of its staff, or about 200 jobs. Big Tech peers, which are investing heavily in artificial intelligence, have also announced job cuts. Facebook parent Meta earlier this year said it would trim about 5% of its "lowest performers", while Alphabet's Google has also laid off hundreds of employees in the past year. Amazon has also cut jobs across its business segments, most recently in its books division. The company had earlier laid off employees in its devices and services unit, and communications staff.
Time of India
3 days ago
- Business
- Time of India
Microsoft to cut about 4% of jobs amid hefty AI bets
Microsoft will lay off nearly 4% of its workforce, the company said on Wednesday, in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence infrastructure. The company, which had about 228,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers. It was planning to cut thousands of jobs, particularly in sales, Bloomberg News reported last month. The Windows maker had pledged $80 billion in capital spending for its fiscal year 2025. However, the soaring cost of scaling its AI infrastructure has weighed on its margins, with its June quarter cloud margin expected to shrink from last year. Microsoft said on Wednesday it planned to reduce organizational layers with fewer managers and streamline its products, procedures and roles. The Seattle Times first reported on the layoffs earlier on Wednesday. Separately, Bloomberg News reported Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10% of its staff, or about 200 jobs. Big Tech peers, which are investing heavily in artificial intelligence, have also announced job cuts. Facebook parent Meta earlier this year said it would trim about 5% of its "lowest performers", while Alphabet's Google has also laid off hundreds of employees in the past year. Amazon has also cut jobs across its business segments, most recently in its books division. The company had earlier laid off employees in its devices and services unit, and communications staff. Economic uncertainties and rising costs have triggered layoffs across sectors in Corporate America, as companies rush to streamline operations and hedge against further cost pressures.
India Today
3 days ago
- Business
- India Today
Microsoft to cut 9,000 jobs in fresh round of lay offs amid restructuring
Microsoft will lay off nearly 4 per cent of its workforce, the company said on Wednesday, in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence company, which had about 2,28,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers. It was planning to cut thousands of jobs, particularly in sales, Bloomberg News reported last Windows maker had pledged USD 80 billion in capital spending for its fiscal year 2025. However, the soaring cost of scaling its AI infrastructure has weighed on its margins, with its June quarter cloud margin expected to shrink from last year. Microsoft said on Wednesday it planned to reduce organisational layers with fewer managers and streamline its products, procedures and Seattle Times first reported on the layoffs earlier on Wednesday. Separately, Bloomberg News reported Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10 per cent of its staff, or about 200 Tech peers, which are investing heavily in artificial intelligence, have also announced job parent Meta earlier this year said it would trim about 5 per cent of its "lowest performers", while Alphabet's Google has also laid off hundreds of employees in the past has also cut jobs across its business segments, most recently in its books division. The company had earlier laid off employees in its devices and services unit, and communications uncertainties and rising costs have triggered layoffs across sectors in Corporate America, as companies rush to streamline operations and hedge against further cost pressures.- Ends
