Microsoft plans another round of layoffs, may cut thousands of jobs across teams in ...
Microsoft is preparing to announce another round of layoffs as part of the company’s efforts to rein in costs, according to a report by Business Insider. The job cuts are expected to affect proffesisoanls in the sales, consulting and roles within the Xbox gaming division. While the scale will be smaller than last year’s reductions, thousands of positions could be eliminated. This latest round of layoffs is said to impact less than 2.5% of Microsoft’s 220,000-person workforce, compared to last year’s larger layoffs that saw 6,000, jobs cut in May and another 9,000 in July about 4% of staff. As per the report by BI, some of the affected employees are now being offered new roles at the company.
The layoffs are expected to be announced next week
The layoffs are expected to be announced next week, though the exact timing could shift. Historically, Microsoft has made workforce adjustments around the start of its fiscal year on July 1. The move underscores the company’s push to control expenses as it ramps up AI investments, even as Wall Street expresses concern that AI could disrupt traditional software services. Microsoft’s stock has fallen about 17% in the past month.
Retirement program and workforce adjustments
Earlier this year, Microsoft introduced a voluntary retirement program for U.S. employees level 67 and below who had 70 years of age and service. Nearly one-third of the 9,000 eligible employees accepted the buyout, allowing Microsoft to reduce headcount without repeating last year’s scale of layoffs. Sales employees with commission-based pay were excluded from the program.
This is the first voluntary retirement program in Microsoft's 51-year history. The company said last month it will take a $900 million charge in the current quarter to fund the buyouts. About 7 percent of Microsoft's US workforce, or roughly 8,750 people, are eligible. The formula is simple: add your age to your years of service, and if the total is 70 or more, the offer is on the table. Employees get 30 days to decide.
The layoffs are expected to be announced next week
The layoffs are expected to be announced next week, though the exact timing could shift. Historically, Microsoft has made workforce adjustments around the start of its fiscal year on July 1. The move underscores the company’s push to control expenses as it ramps up AI investments, even as Wall Street expresses concern that AI could disrupt traditional software services. Microsoft’s stock has fallen about 17% in the past month.
Retirement program and workforce adjustments
Earlier this year, Microsoft introduced a voluntary retirement program for U.S. employees level 67 and below who had 70 years of age and service. Nearly one-third of the 9,000 eligible employees accepted the buyout, allowing Microsoft to reduce headcount without repeating last year’s scale of layoffs. Sales employees with commission-based pay were excluded from the program.
This is the first voluntary retirement program in Microsoft's 51-year history. The company said last month it will take a $900 million charge in the current quarter to fund the buyouts. About 7 percent of Microsoft's US workforce, or roughly 8,750 people, are eligible. The formula is simple: add your age to your years of service, and if the total is 70 or more, the offer is on the table. Employees get 30 days to decide.
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