Microsoft Cuts 6,800 Jobs as Cloud CEO Predicts More Layoffs Across the Industry
Microsoft failed to identify the departments most affected by job cuts but explained to CNBC that these layoffs were part of wider structural changes and not related to job performance
Microsoft Cuts 6,800 Jobs as Cloud CEO Predicts More Layoffs Across the Industry
The middle management team at Tech received a harsh reality check. Microsoft announced
thousands of employee layoffs and a cloud CEO warned that MBAs and project managers face
the highest risk of termination.
Microsoft announced job cuts for 3% of its global workforce which amounts to over 6,800
employees marking its biggest layoff since 2023. The company implemented cuts throughout all
teams and levels in various regions to eliminate management layers and maintain
competitiveness in an AI-focused market.
The founder of a US cloud firm wrote bluntly on X that Microsoft Redmond dismissed numerous
high paid PMs this morning. Probably worldwide too. Other companies will follow soon. MBA
jobs are getting increasingly worthless. BEWARE folks.”
Microsoft declined to reveal which departments experienced the most significant reductions but
stated to CNBC that the job cuts were part of a company-wide restructuring effort rather than
performance-related terminations.
The Microsoft spokesperson assured CNBC that the company will continue with organizational
adjustments to secure its competitive edge in an ever-changing market.
Other tech companies are making similar workforce reductions during this period. The
cybersecurity company CrowdStrike announced that it would reduce its workforce by 5% last
week while Amazon reduced roles because of its belief that management levels were excessive.
Microsoft continues to maintain solid financial stability despite implementing staff reductions.
The company achieved $25.8 billion in net income for the April quarter which surpassed analyst
predictions while keeping future projections positive.
The company aims to reduce its workforce to align with broader tech industry changes that focus
on minimizing non-engineering and non-product roles.
Other tech companies are now following the same strategic approach while layoffs at Microsoft.
CrowdStrike revealed a workforce reduction of 5% last week while Amazon recently reduced
certain positions.
Niles’s warning is stark: The traditional secure roles of MBAs and program managers are rapidly
diminishing in the technology sector.
