Reference: Victoria Fakiya
Microsoft to reduce 3% of its global workforce
Microsoft to lay off about 6,000 staff globally
Source:.microsoft.com/africa
Microsoft is reportedly planning to give the boot to about 3% of its global workforce, roughly 6,000 employees, as part of a broader restructuring aimed at streamlining management and boosting efficiency. This marks the company’s largest round of job cuts since 2023, when it eliminated 10,000 positions. The layoffs will affect staff across various divisions and geographies, including roles at LinkedIn and international branches.
The company, which had 228,000 employees as of June last year, is focusing on reducing layers of management to enhance agility and better position itself in a dynamic market environment. Despite strong financial performance, including a recent quarterly net inc0me of $25.8 billion, Microsoft says it’s making these cuts to control costs while investing heavily in artificial intelligence, with plans to spend up to $80 billion in the 2025 fiscal year on related initiatives.
In Africa, Microsoft maintains a significant presence with offices in countries such as South Africa, Kenya, and Nigeria. However, in 2024, the company confirmed layoffs at its African Development Center (ADC) in Lagos, Nigeria, affecting its engineering team. While the Lagos facility remains operational, the ADC’s closure marked a significant shift in Microsoft’s operations in the region.
Per the tech giant, the recent layoffs and restructuring efforts reflect Microsoft’s ongoing strategy to optimize operations amid shifting business priorities and market conditions. While the company continues to prioritise high-performing teams and strategic investments, particularly in artificial intelligence, these changes have significant implications for its workforce worldwide, including in African countries where it operates.
As Microsoft navigates these organisational changes, the impact on its operations in Africa and other regions will depend on how the company balances its investment in emerging technologies with the need to maintain a skilled and agile workforce.
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