Layoffs news: Microsoft confirms 6,000 job reductions across departments, including LinkedIn

Microsoft has announced plans to cut approximately 6,000 roles across its global workforce, citing efforts to streamline its organisational structure and reduce layers of management. The job reductions will affect fewer than three per cent of the company's total staff and will span various departments, levels, and regions — including LinkedIn.

A company spokesperson stated the move is part of ongoing adjustments designed to keep Microsoft competitive in an increasingly dynamic market landscape. "We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace," the spokesperson said.

Microsoft job cuts in 2024

The technology giant, which had a global headcount of 228,000 as of June 2024, regularly undertakes strategic layoffs to refocus on key business areas. This latest round of cuts follows a broader trend across the tech industry, where companies are recalibrating amid shifting demands and rising operational costs.

Microsoft last implemented significant job cuts in January 2023, when around 10,000 employees were let go — impacting teams working on HoloLens, its augmented reality headset, and other hardware divisions.

The current restructuring comes amid a surge in expenditure on artificial intelligence infrastructure and cloud services. Microsoft has committed to spending roughly $80 billion this fiscal year on data centres to support Azure and AI-driven offerings — a figure highlighting the scale of its ambitions in the space.

In line with fiscal year-end practices — which concludes in June — the company has already begun reconfiguring some internal teams. Recent changes include transferring sales responsibilities for small and medium-sized business clients to third-party firms, alongside adjustments in several technical units.

This wave of job cuts mirrors a wider trend in the technology sector. Earlier this year, Meta said it would reduce its workforce by five per cent through performance-related exits, while Salesforce made over 1,000 positions redundant to pivot towards new AI-oriented roles.

(With inputs from Bloomberg)