Microsoft to lay off more staff to refocus AI investment

Microsoft will implement another staff reduction, equivalent to an average of 3 % of the workforce. It will also restructure various areas to reduce costs.

The tech giant is investing heavily in artificial intelligence, putting pressure on its finances.

During the last fiscal quarter, Microsoft reported $70 billion, “a 13 % increase over the same period last year,” with net profits of $25.8 billion. However, further layoffs will be implemented, starting with sales departments to balance expenses.

Since 2023, Microsoft has laid off more than 20,000 people, about 9 % of the total, in its race to develop AI, a sector that, according to internal estimates, already handles 30% of internal projects.

The company is seeking to “reduce its middle management. This way, they can achieve flatter and more agile structures for decision-making in a time of rapid change like this. In short, fewer bosses, less bureaucracy, and more lines of code.”

The expenses that force staff reductions are allocated to the construction of data centers, as well as the training of models and artificial intelligence for the present and the future.

M.Pino

Source: genbeta

(Reference image source: Valent Lau on Unsplash)

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