Microsoft has conducted another round of layoffs this week as part of its ongoing workforce reduction efforts. This marks the latest in a series of job cuts by the Redmond-based tech giant this year.

Key Points:

• Scope of Layoffs: The layoffs affected multiple teams and locations, but Microsoft has not disclosed the total number of employees impacted. According to posts on LinkedIn, those affected include individuals in product and program management roles.
• Company Statement: A Microsoft spokesperson stated, “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
• Context and Recent Layoffs:
• Microsoft’s fiscal year 2024 ended on June 30, and it is not uncommon for the company to restructure at the beginning of a new fiscal year.
• Last month, Microsoft cut around 1,000 jobs across various departments, including its Azure cloud unit and HoloLens mixed-reality organization.
• In January, nearly 2,000 employees were laid off from the gaming unit, shortly after the $69 billion acquisition of Activision Blizzard.
• Reasons for Layoffs: The layoffs are part of Microsoft’s strategy to maintain profit margins amidst increased capital spending. This spending is aimed at enhancing cloud infrastructure to support AI applications.
• Employment Trends: Microsoft’s workforce expanded significantly during the pandemic but has stabilized over the past two years. As of the end of 2023, the company employed about 227,000 people worldwide, down from 232,000 the previous year, according to GeekWire’s analysis of regulatory filings and earnings calls.