Microsoft Blames Job Cuts on Emerging Technologies

On Tuesday, Microsoft announced it was streamlining management and leveraging new technology, amid reports of thousands of employee layoffs.

The AI-driven tech giant did not reveal the exact number of job cuts, but U.S. media reports estimate around 6,000 positions, roughly 3% of its global staff.

According to a filing with Washington state’s labor agency, this included 1,985 employees based in Microsoft’s home state.

Microsoft Cites Market Shifts in Ongoing Organizational Changes

“We are making organizational adjustments to better position the company for success in a rapidly changing market,” a Microsoft spokesperson said in an emailed statement.

The company, progressing with its AI integration across all products, also stated it aims to “enable employees to dedicate more time to meaningful tasks by utilizing new technologies and tools.”

Two weeks ago, Microsoft reported strong quarterly earnings for the January to March period, driven by impressive growth in its cloud computing and AI sectors.

Celebrating its 50th anniversary this year, Microsoft was among the first major tech firms to heavily invest in artificial intelligence after ChatGPT’s 2022 debut shook the industry.

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