Microsoft CEO Satya Nadella leaves after attending a meeting with Indonesian President Jokowidodo at the Presidential Palace in Jakarta, Indonesia on April 30, 2024.
Willie Kruniawan | Reuters
Microsoft On Tuesday, he said it fired 3% of its employees across all levels, teams and regions, affecting around 6,000 people.
“We continue to implement the organizational changes necessary to maximize our company for success in a dynamic market,” a Microsoft spokesperson said in a statement to CNBC.
The company reported better than expected, with quarterly net profit of $25.8 billion and a positive forecast in late April.
Microsoft had 228,000 employees worldwide at the end of June.
It could be Microsoft’s biggest round of layoffs since 2023 eliminating 10,000 roles. In January, the company announced a small performance-based round of layoffs. These new job cuts have nothing to do with performance, the spokesman said.
One of the goals is to reduce the layer of management, a spokesperson said. January Amazon After realising “unnecessary layers” within the organization, it announced it was eliminating some employees.
Last week, Cybersecurity Software Provider Cloud Strike It has been announced that 5% of the workforce will be fired.
In January, Microsoft CEO Satya Nadella told analysts that the company would make changes to its sales execution after it brought slower growth than expected with its revenues from Azure Cloud, which is not related to artificial intelligence. AI cloud growth performance outweighs internal projections.
“How do you tweak the incentives, do you go to the market?” Nadella said. “At the time of the platform shift, you want to make sure that even the new design victory is leaning, so you’re not continuing to do what you did with the previous generation.”
On Monday, Microsoft stock closed at $449.26, the highest price ever this year. They closed last July at a record $467.56.
