Microsoft CEO Satya Nadella leaves after having attended a meeting with Indonesian President Joko Widodo at the Jakarta presidential palace, Indonesia, April 30, 2024.
Willy Kurniawan | Reuters
Microsoft On Tuesday, he indicated that he releases 3% of employees at all levels, teams and geographies.
“We continue to implement the organizational changes necessary to best position the company to succeed in a dynamic market,” said a Microsoft spokesperson in a press release at CNBC.
The company declared better than expected results and an optimistic quarterly forecast at the end of April.
Microsoft had 228,000 employees worldwide at the end of June, which means that this decision will affect thousands of employees.
It is probably the largest series of Microsoft layoffs since the elimination of 10,000 roles in 2023. In January, the company announced a small series of performance -based layoffs. These new job cuts are not related to performance, said the spokesperson.
One goal is to reduce management layers, said the spokesperson.
In January, Microsoft CEO Satya Nadella told analysts that the company would bring sales execution changes that have resulted in lower than expected growth in Azure Cloud income which was not linked to artificial intelligence. AI Cloud growth has exceeded internal projections.
“How do you really change incentives, marketing?” Said Nadella. “At a time of platform changes, you want to make sure that you are even looking at new conceptions, and you do not continue to do what you have done in the previous generation.”
Microsoft’s actions on Monday, stopped negotiating at $ 449.26, the highest price so far this year. They closed a record of $ 467.56 last July.
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