Around 4,800 Microsoft employees — roughly 2% of its global workforce — are being laid off, with sales teams and Xbox hit particularly hard.
"Microsoft has announced plans to lay off roughly 4,800 employees. That's about 2.1% of its global workforce, Business Insider's Ashley Stewart reported. The cuts mostly impact sales and Xbox gaming teams, with Xbox accounting for 1,600 of the eliminated roles. The Xbox division also plans to cut 20% of its workforce this fiscal year. In a memo to employees on Monday, Microsoft HR Chief Amy Coleman said that the roles are not being replaced by AI. But she did say that AI is changing how work gets done. Some daily tasks can now be automated, she said, adding that we all need to keep learning, keep building new skills, and keep adapting as the work evolves. The cuts come after Microsoft launched a voluntary retirement program earlier this year, offering buyouts to some employees. About one-third of the nearly 9,000 eligible employees took it, which allowed for fewer layoffs. Still, Microsoft is cutting costs as it spends heavily on AI infrastructure, while facing growing investor concerns that AI could upend traditional software. Those worries helped send Microsoft's stock tumbling 19% in June, its worst monthly performance since the dot-com era. To read Ashley Stewart's reporting on Microsoft and its shift towards AI, head to Business Insider."
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Around 4,800 Microsoft employees — roughly 2% of its global workforce — are being laid off, with sales teams and Xbox hit particularly hard.
