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A spokesperson said the organisational changes are "necessary to best position the company for success in a dynamic marketplace."
Microsoft is said to be letting go of about 6,000 employees, making up roughly 3% of its global workforce, according to a CNBC report.
This will involve various teams, levels, and locations, as part of ongoing organisational changes.
Responding to queries by HRO, a Microsoft spokesperson said: "We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace." No breakdown on the affected roles or locations was shared.
Per the CNBC report, in Washington state alone, 1,985 roles are expected to be affected, including 1,510 employees based in-office at the company's Redmond headquarters.
Earlier this year, Satya Nadella, CEO of Microsoft was quoted as saying that the company would make changes to how it approaches sales execution, especially during a time of rapid platform shifts.
"At a time of platform shifts, you kind of want to make sure you lean into even the new design wins, and you just don’t keep doing the stuff that you did in the previous generation," CNBC reported.
The latest move comes on the back of Microsoft’s strong financial performance in recent times, with the company reporting US$25.8bn in net income for the latest quarter, along with a confident outlook shared in April.
In the third quarter of fiscal year 2025, Microsoft reported:
- US$29.9bn in revenue from its Productivity and Business Processes segment, up 10%, with strong growth in Microsoft 365 and LinkedIn.
- US$26.8bn in revenue from its Intelligent Cloud segment, up 21%, driven by a 33% increase in Azure and other cloud services.
- US$13.4bn in revenue from its More Personal Computing segment, up 6%, with growth in Windows, Xbox, and advertising.
- Returned US$9.7bn to shareholders through dividends and share buybacks.
Lead image / Microsoft
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