On Tuesday, May 13, Microsoft announced that it would eliminate redundant managerial layers, and leverage cutting-edge technology, amid reports of significant layoffs. 

Although the company did not confirm the exact number of job cuts, US media outlets estimate approximately 6,000 employees, or 3% of its global workforce, will be affected, reported AFP.

A filing with Washington state’s labour agency confirmed 1,985 job cuts in Microsoft’s home state.

A Microsoft spokesperson stated, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."

He additionally said that the company, which is advancing in its plans of deploying Artificial ain’t (AI) across all its products, was in the process of "empowering employees to spend more time focusing on meaningful work by leveraging new technologies and capabilities."

Microsoft emphasised that these changes would enable employees to prioritise impactful work by adopting new technologies and capabilities. 

This strategy aligns with the company’s broader goal to enhance efficiency and innovation, particularly in AI.

The layoffs follow Microsoft’s robust quarterly earnings for January to March 2025, driven by its booming cloud computing, and AI sectors. As the company marks its 50th anniversary, it continues to lead the tech industry’s AI revolution, a focus that began with the transformative launch of ChatGPT in 2022.