Microsoft to cut 3pc of its workforce - reports

(Sharecast News) - Microsoft is laying off approximately 3% of its global workforce, it emerged on Tuedsay, amounting to around 6,000 roles, as part of a broad organisational restructuring aimed at streamlining operations and reducing layers of management. The cuts would reportedly affect employees across all levels, departments, and geographies, including its LinkedIn division.

It came despite the company's strong financial position, with Microsoft recently reporting quarterly net income of $25.8bn, while its share price rose to its highest level this year, nearing a record reached in July 2023.

With a global headcount of 228,000 employees, the company remained the world's most valuable publicly traded firm, with a market capitalisation exceeding $3trn.

Microsoft told CNBC the layoffs were not related to employee performance, but were part of a longer-term effort to enhance agility and responsiveness in a competitive tech landscape.

The company made smaller performance-based job cuts earlier in the year, but the new round would be its most substantial since eliminating 10,000 roles in early 2023 during a broader tech sector downturn.

Microsoft had not publicly commented on the reports by Tuesday afternoon.

At 1121 EDT (1621 BST), shares in Microsoft Corporation were down 0.33% in New York at $447.77.

Reporting by Josh White for Sharecast.com.