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Microsoft Layoffs: Is AI the Main Reason?

The company usually assesses its workforce based on performance and strategic needs, which may result in similar adjustments in its Indian operations. Read further to know the reasons and details about Microsoft layoffs.

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Preeti Anand
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Microsoft has begun to lay off some staff. Layoffs at Microsoft are a result of changes in the tech sector. Businesses use these actions to adapt to changing consumer demands and technological advancements. In order to be ready for future employment chances, employees should keep a note of any changes within their teams. They should think about learning new skills and updating themselves. Although there is currently no official announcement regarding layoffs in India, the trend of job cuts at Microsoft is concerning to workers around the world. The company usually assesses its workforce based on performance and strategic needs, which may result in similar adjustments in its Indian operations. Read further to know the reasons and details about Microsoft layoffs.

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Reason of Layoffs at Microsoft

According to HT, reasons given to a few employees by Microsoft are "The reason(s) for the termination of your employment include your job performance has not met minimum performance standards and expectations for your position," the report quoted the termination letters as saying "You are relieved of all job duties effective immediately and your access to Microsoft systems, accounts, and buildings will be removed effective today. You are not to perform any further work on behalf of Microsoft." The letters further stated that if the individual applies for other positions with Microsoft in the future, the business will take into account their prior performance and termination. This follows Microsoft's evaluation of its staff up to level 80, one of its highest levels in recent months. Employees who lose their jobs at Microsoft are required to remove all work files from their personal devices. They have to comply with the company's privacy policies, even after they have left.

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According to TOI a Microsoft spokesperson defended the company's actions, stating, "At Microsoft we focus on high performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."

 

Microsoft Layoffs: Complete Details

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Microsoft has recently laid off around 1,500 employees in the U.S., affecting teams in Azure and mixed reality. These job positions are mainly affected due to the sudden layoffs. As much as it doesn't sound fair, these job cuts are part of the company’s plan. The future plan of Microsoft is to focus more on artificial intelligence (AI) and other important areas. Technically the layoffs are mainly in Microsoft’s Strategic Missions and Technologies (SMT) division, including Azure for Operators and Mission Engineering teams. So these job positions are at risk and the employees who have sustained the Layoff can be affected in the future too.

If you want to believe,  Microsoft says such changes are normal in business. It is a normal situation in the company. They are focusing on AI and other growing areas to better serve customers and partners. And not to miss the fact is that this is not the first time Microsoft has cut jobs. The company laid off thousands of employees in 2023 and 2024. So layoffs are a thing at Microsoft. Talking about the current employment strength at Microsoft, as of June 2024, Microsoft had about 221,000 employees worldwide. This number is lower than during the pandemic when the company had more staff. Tough to believe but it's true! These layoffs show how Microsoft is shifting its priorities to new technologies like AI. 

 

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