Microsoft Layoffs Details: Microsoft has once again announced a large pruning. This time the company is showing the way out of its global employees to about 3% of the staff, that is, the jobs of about 6000 people are going to end. The company has clarified that this decision has been taken due to heavy investment, reduced costs and management structure in Artificial Intelligence. Middle management rolls, ie it has had the most impact on managerial positions. Microsoft now wants to reduce the number of its managers and increase the scope of team control so that more efficient and fast decisions can be made.
What options were given to employees?
- The company has opened two avenues for the extracted employees. Salary and bonus/incentives will be available for 60 days.
- Two options are given:
- Either take a chance to improve your situation through the Performance Reform Program (PIP)
- Or the Global Volunteer Spition Agreement should be adopted with 16 weeks of Severn Pay. Those who choose the option of PIP will have to take a decision in 5 days. Once you choose this option, you will not get the benefit of another option.
Comparison with previous trim
- In the year 2023, the company excluded about 10,000 employees. Since then, this is believed to be the biggest pruning.
- Who was removed?
- This retrenchment includes employees of different levels, from different countries and various departments.
- In the state of Washington alone, 1985 employees were on the role of the company, many of them have also been impressed.
AI became both reason and solution
- Increasing expenses and investment on AI have given new opportunities to Microsoft, but due to this the company has also faced margin pressure.
- The company is going to invest $ 80 billion in FY2025, with a large share on data centers and AI infrastructure.
Effect on business?
Although the news of the trimming is disappointing, Microsoft has recorded better profits and sales from Wall Street’s estimates in the January-March quarter. The company believes that this step will ensure better stability and efficiency in the future for a long time.
The expansion of AI is now changing not only technology, but also the face of jobs. This trim of Microsoft is part of the future strategies, but it has a direct impact on thousands of families.
