Microsoft (Nasdaq:MSFT) on Tuesday said it is laying off 3% of its employees, which equals an estimated 6,000 positions.
This move will reportedly include a cut in the number of middle managers in the company, though it will affect “all levels, teams, and geographies,” Microsoft told CNBC, which reported that the company is “aiming to reduce management layers.” It reported that the current layoffs are not tied to performance, unlike the round of layoffs in January.
A second goal, according to another report, is to increase the ratio of coders versus non-coders on projects.
While no official announcement about the layoffs was issued, a Microsoft spokesperson told Computerworld, “we continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
Patrick Moorhead, founder and chief analyst at Moor Insights & Strategy, said, “technology companies like Microsoft are rebalancing workforces to align with AI delivery and their internal use of AI tools.
Delivering AI tools requires different developer and data skillsets, and Microsoft’s AI tools are making employees more efficient.”
This is an ongoing story.
Keep up with tech industry layoff news in Computerworld’s layoff tracker.
Source: https://www.computerworld.com/article/3984360/microsoft-to-cut-an-estimated-6000-employees.html" style="color: #0066cc;">https://www.computerworld.com/article/3984360/microsoft-to-cut-an-estimated-6000-employees.html
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