Microsoft Fires Hundreds More Workers Amid AI-Fueled Growth, Calls It Positioning The Company For 'Success'

Just weeks after announcing its largest round of layoffs in years, Microsoft Corporation (NASDAQ:MSFT) has decided to eliminate hundreds of additional jobs.

What Happened: On Monday, more than 300 Microsoft employees were told that their roles had been cut, reported Bloomberg, citing a Washington state notice. 

A Microsoft spokesperson confirmed this development to the publication, saying, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."

These layoffs follow the roughly 6,000 cuts Microsoft announced last month.

Also Read: OpenAI's Acquisition Of Jony Ive's Startup Poses Threat To Apple's Dominance

As per the report, while the specific roles affected have not been determined, previous layoffs primarily impacted software engineers.

The tech giant had about 228,000 full-time employees as of June 2024, out of which 55% were based in the U.S.

Why It's Important: Microsoft is currently the most valuable company in the world with a $3.43 trillion market capitalization.

The cuts come as Microsoft and other tech giants like Meta Platforms, Inc. (NASDAQ:META) double down on artificial intelligence, investing billions while trimming non-AI-related headcount.

Previously, Microsoft CEO Satya Nadella said that 20% to 30% of the company's code base is now being written with the help of AI.

Price Action: Microsoft shares rose 0.35% during Monday's regular trading session but slipped 0.26% in after-hours trading, according to Benzinga Pro data.

According to Benzinga's Edge Stock Rankings, Microsoft shows a favorable price trend across the short, medium and long term. You can explore more detailed metrics here.

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