Microsoft to cut 3% of workforce

Microsoft to cut 3% of workforce

Microsoft is laying off some 6,000 employees, approximately 3% of its global workforce, the company said Tuesday.

The global staff reductions impact all divisions and levels, including LinkedIn, which is owned by Microsoft.

This is the biggest round of layoffs since 2023, when 10,000 positions were cut, CNBC notes.

The move is meant to recalibrate staffing to achieve priorities, while streamlining management tiers.

 These cuts are intended to reduce the number of middle managers and increase the ratio of coders versus noncoders on projects.

Microsoft organizations want to increase their "span of control," or the number of employees who report to each manager.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement to CNBC.