Microsoft is laying off 4,800 employees as it begins its new financial year. This reduction represents approximately 2.1 percent of the company’s total workforce, following a previous cut of around 9,100 staff a year earlier. The affected roles are concentrated within Microsoft’s commercial sales business and the Xbox division. Amy Coleman, executive vice president and chief people officer, stated in an internal memo that the industry is changing. She cited the need to adjust resources and roles to respond to how artificial intelligence is impacting companies like Microsoft. The software maker aims to shift how it operates to maintain efficiency.
These cuts signal a continued effort to align costs with revenue streams in a saturated market. The focus on sales and gaming suggests a strategic pivot away from broader growth initiatives toward core profitability. Redundancies in these specific areas indicate that previous expansion plans have not yielded the expected returns.
* The layoffs affect roughly 2.1 percent of the workforce
* Most roles are in commercial sales and Xbox
* This follows a previous reduction of 9,100 staff
