Microsoft will cut some employees who are not very efficient

In the wake of the artificial intelligence boom, OpenAI’s major shareholder, Microsoft, increased its capitalization to more than $3 trillion last year, but that doesn’t mean its staffing levels no longer need to be optimized after large-scale staff cuts in 2023 and 2024. Microsoft is going to lay off about 1% more employees.

Image source: Microsoft

This was reported by CNBC with reference to Business Insider. Microsoft representatives had to admit that the corporation was preparing to lay off a small portion of employees in most departments, based on their performance indicators. At the end of June last year, Microsoft had 228,000 employees. Even if less than one percent of the staff is laid off, we are talking about hundreds of people.

Of course, such steps pale in comparison to Microsoft’s actions in 2023, when 10,000 of the corporation’s employees lost their jobs. A year ago, after concluding a deal to purchase Activision Blizzard, Microsoft announced it would lay off 1,900 people due to the need to eliminate duplicative functions. At the end of last year, Microsoft shares rose in price by 12%, but against the backdrop of the dynamics of the Nasdaq index, which grew by 29%, this was a rather modest result, not to mention the progress of some competitors in this area.