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Microsoft starts the new fiscal year with more layoffs

Unfortunately, Microsoft is continuing its year-long plan to trim its workforce. GeekWire reports that with the start of the new fiscal year, Microsoft has included another round of layoffs. While Microsoft hasn’t provided official layoff numbers, LinkedIn posts have provided clues.

It would appear that multiple teams and geographic areas were impacted by the cuts. It appears most of the impact came from product and program management roles. Microsoft’s fiscal year ended June 30th, and it’s common for companies to cut employees at the start of a new fiscal year. Last month, roughly 1,000 employees were cut across Azure and mixed reality teams, and let’s not forget the 2,000 employees laid off earlier this year in the gaming sector.

“Organizational and workforce adjustments are a necessary and regular part of managing our business,” a spokesperson said in a statement. “We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.” 

Microsoft chose to cut these jobs to maintain its current profit margins and counteract some of the spending required in its cloud divisions to run AI applications. Microsoft’s roster did increase during the work-from-home boom of the pandemic, but it has gotten smaller in the last couple of years.

David Allen
David Allen
David has been a part of technology for 35 years, enjoys sharing his opinions and viewpoints all the way back to the BBS world of the 1990s. Do you remember those?

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