Microsoft Layoffs: Thousands of jobs are going to be lost in Microsoft once again, know the reason

Microsoft Layoffs: Microsoft had earlier laid off about 6,000 employees in May this year, which was Microsoft’s biggest layoff in the last few years. According to the data of June 2024, the company had 2.28 lakh full time employees. Of these, 55 percent were working in America.

Microsoft Layoffs: Microsoft is once again planning to cut thousands of jobs, especially in the sales department. The reason behind this move is that the company is streamlining its workforce amid growing investments in artificial intelligence. This has been said in a Bloomberg News report citing sources. The report said that layoffs will be announced early next month after the end of Microsoft’s financial year.

Microsoft follows a fiscal year of July 1 to June 30. According to the report, the job cuts will not only affect the sales teams. Also, the timing of layoffs may change. According to the data of June 2024, the company had 2.28 lakh full time employees. Of these, 55 percent were working in the US.

Layoffs have also been done in May and June

Microsoft had earlier laid off about 6,000 employees in May this year, which was Microsoft’s biggest layoff in the last few years. After that, in early June, news came that the company laid off more than 300 employees. Bloomberg revealed this on the basis of the Washington State notice.

There is a race for AI

Amid the growing emphasis on AI, Microsoft is also increasing investment in it. Many companies in various industries are accelerating the integration of AI in their products and services. Companies are now giving prominence to AI-related jobs and using technology to save money. Amazon CEO Andy Jassy recently said that the rollout of generative AI and agents will reduce its total corporate workforce in the next few years.

Microsoft plans capital expenditure of $80 billion this fiscal year, most of which is aimed at expanding data centers to ease capacity constraints for AI services.

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