Microsoft employees were hit with another round of layoffs at the company as it looks to “prioritize and invest in strategic growth areas.”
The number of employees laid off was not publicly disclosed by Microsoft, but several relatively high-ranked employees took to social media to announce their exits.
Tech Industry Struggling to Employ Staff
The tech industry as a whole has been employing a series of layoffs this year.
According to layoffs.fyi, over 100,000 tech workers have been laid off already in 2024.
Microsoft Making Cuts Across the Business
Microsoft teams all over appear to be reducing their headcounts as the business chooses to cut wage costs.
Details are light on specifics, but reports are revealing that cuts are being made across the country and in a variety of different teams.
Regular Restructuring?
Microsoft often makes cuts around this time of year as part of a restructuring process.
The company’s financial year ends on June 30, so it often makes strategic decisions near the beginning of July.
Layoffs Last Month
However, Microsoft also made a number of layoffs last month in their Azure and Hololens divisions.
Microsoft stated: “Organizational and workforce adjustments are a necessary and regular part of managing our business.”
Gaming Division Also Struggling to Employ Workers
Microsoft also laid off almost 2000 workers back in January from its gaming unit.
This decision was made just 3 months after it had acquired gaming giant Activision Blizzard under its portfolio.
Gaming Company Shutdowns
More recently, Microsoft and Xbox announced the closures of several of its game studios, including Tango Gameworks and Arcane Austin.
The decision was made for the “reprioritization of titles and resources,” according to Xbox Game Studios lead Matt Booty.
Balancing Books for AI
The recent layoffs may be an attempt by Microsoft to balance the books following recent heavy capital outlays.
Microsoft has recently made significant investments in the infrastructure required to deploy AI-driven applications and services.
Long-Serving Manager Blindsided by Decision
One of Microsoft’s Technical Program Managers, Cory Ebert, expressed surprise at their termination of employment on LinkedIn.
“Well, this isn’t how I thought today would go. After nearly 15 years (seriously, two months shy), Microsoft has made the decision to end our working relationship effective immediately due to changes in the business direction and landscape.”
Product Manager Position Eliminated
A Senior Product Manager at Microsoft, Angela Viness, also announced their exit on LinkedIn, saying their position had been eliminated entirely.
“Hello friends – In light of the recent layoffs at Microsoft, my position was eliminated, and I am now on the lookout for my next career adventure. It was an incredible ride, and I’m extremely grateful for the opportunities I was given.”
