The tech industry is witnessing a wave of layoffs, driven by rapid technological advancement and shifts in market dynamics. Google recently let go of over 100 employees, while Microsoft is preparing to lay off approximately 6,000 workers in its second major workforce reduction since 2023, when it laid off 10,000 employees.
This upcoming layoff, aimed at improving operational efficiency and aligning with changing market demands, primarily targets management-level roles. Engineering and coding teams are expected to face minimal impact. The move reflects Microsoft’s growing focus on Artificial Intelligence (AI), as it reallocates resources to support internal restructuring and innovation in AI technologies.
As of June 2024, Microsoft employed 228,000 people globally. Affected employees will receive severance packages that include 12 weeks of base pay, plus an additional two weeks for each year of service, depending on team and location. Those dismissed for performance reasons will be ineligible for rehire for two years.
Though smaller in number compared to the 2023 layoffs, the 2025 cuts are seen as more strategically significant, aiming to streamline operations by reducing management layers and boosting productivity. The announcement has sparked concern and uncertainty among Microsoft staff.
