(Image source from: REUTERS)

On Tuesday, Microsoft announced that it would be reducing unnecessary management levels and capitalizing on advancements in technology as rumors circulated about significant layoffs. While the company did not specify the exact number of job cuts, reports from U.S. media indicated that approximately 6,000 positions, or around three percent of its global workforce, would be eliminated. This reduction includes 1,985 workers from its home state of Washington, as noted in a report filed with the state’s labor department. A spokesperson for Microsoft stated via email, "We are continuing to make organizational adjustments to optimally position the company for success in a rapidly changing market." The firm, which is working to integrate AI throughout all its offerings, further commented that it aims to "enable employees to dedicate more time to meaningful tasks by utilizing new technologies and capabilities."

A fortnight ago, Microsoft reported strong quarterly results for the January to March timeframe, driven by outstanding performance in its cloud computing and AI sectors. Celebrating its 50th anniversary this year, the company was among the first major tech players to heavily invest in artificial intelligence following the industry shake-up caused by the introduction of ChatGPT in 2022.