Microsoft has rolled out another round of layoffs this week as part of its ongoing effort to streamline its workforce. The exact number of affected employees is yet unknown, but it is clear that the cuts have hit a variety of teams and geographic locations. According to a report by GeekWire, posts from those laid off on LinkedIn show that the cuts included product and program management roles.

A Microsoft spokesperson told the publication that these “organizational and workforce adjustments” are a necessary and routine part of managing the business. The company continues to prioritize and invest in strategic growth areas to ensure future success and support its customers and partners.

These layoffs come shortly after the conclusion of Microsoft’s fiscal year 2024, which ended on June 30. It is not unusual for the company to reorganize parts of its business to transition into the new fiscal year. Just last month, Microsoft cut nearly 1,000 jobs across various departments, including its Azure cloud unit and Hololens mixed-reality team.

In addition to these recent layoffs, Microsoft laid off nearly 2,000 employees from its gaming division in January. This significant reduction comes three months after the company completed its $69 billion acquisition of Activision Blizzard, the largest acquisition in Microsoft’s history.

The ongoing layoffs are part of Microsoft’s broader strategy to maintain profit margins amid rising capital expenditures. These expenditures are aimed at building the cloud infrastructure needed to train and deploy the models that power AI applications. During the COVID-19 pandemic, Microsoft’s headcount grew, but it has since stabilized. As of the end of 2023, the company employed about 227,000 people globally, down from 232,000 the previous year.
The tech industry as a whole has seen massive employee reductions this year. According to Layoffs.fyi, more than 100,000 tech workers have been laid off so far in 2023. Last year, more than 260,000 employees were laid off in the industry.

Microsoft’s layoffs reflect a broader trend in the tech sector, where companies are attempting to balance growth and profitability in a rapidly changing economic environment. As the company continues to invest in strategic areas such as AI and cloud computing, it is also making tough decisions to streamline operations and optimize its workforce.

Microsoft’s recent layoffs are part of its strategy to adapt to changing business needs and invest in future growth areas. This approach aims to ensure the company’s long-term success while navigating the challenges and opportunities of the evolving tech landscape.