Microsoft Layoffs Continue With Another 9,000 Cuts
AI-Generated Summary
Microsoft is undergoing significant workforce reductions, impacting 15,000 employees across two waves of layoffs, with additional smaller cuts. Despite being the world’s most valuable company with $96 billion in profit, the rationale includes streamlining operations, reducing middle management, and maintaining margins amid massive investments, such as $80 billion in data centers. While earlier layoffs disproportionately affected software engineers, this round targets roles across teams and geographies, particularly in sales and marketing, likely due to the fiscal year’s end. These cuts reflect the evolving tech industry reality, where even top-performing companies like Microsoft are prioritizing efficiency and adaptability, signaling that job security is no longer guaranteed.
📜 Full Transcript
And the rationale is also pretty clear Get rid of middle layers of management,
streamline teams. Give us the size and scope.
Size and scope is that, you know, you hear 4%, 3% a couple of months ago
doesn’t sound like that much. But with Microsoft, I mean, these are
huge numbers of employees. We have 15,000 people impacted across
two waves. And there’s been other little cuts in
addition to that. And, you know, folks might say
Microsoft, the world’s most valuable company, a lot of days, 96 billion in
profit. Why are they doing all this?
A lot of it’s that I spending. Right.
One day you’re spending 80 billion on data centers and you want to keep your
margins flat. In this case, that’s the largest some
cut heads. And Brody.
The view has been actually the air is getting so good that it means that they
can start getting rid of engineers, is doing the job of them.
But is that really where the cuts come from this time around?
I haven’t seen a ton of evidence that there is that kind of direct employee
replacement, but I think companies certainly want to do it right.
I mean, a vendor like Microsoft, it is selling its software, telling people,
hey, you can do more with less. I think we’d be naive to think they
aren’t also attempting to do that internally.
We saw with the layoffs a couple of months ago disproportionately hit
software engineers. Right.
And the marshal spokesperson told us that in this round it will be across
teams and geographies. But we know from our reporting largely
which divisions and things like Xbox sales and marketing.
Correct. Sales and marketing are the really big
ones right now. And that’s because it’s the end of the
fiscal year. And you generally don’t want to fire
salespeople for the fourth quarter because you’re not going to get the
results you want. And so, yeah, we’re seeing cuts today
that I have reason to believe our focus on those sales employees, what really
cuts across the company. And I think it underscores the kind of
new reality of the tech market that even if you are in one of the most successful
companies, jobs aren’t safe the way they used to be.
[ad_2]
