Microsoft to Sack 6,000 Employees Amid Organizational Restructuring, Skype Shutdown
Tech giant, Microsoft has announced plans to lay off approximately 6,000 employees, representing about 3% of its global workforce, as part of a broader organizational restructuring.
The move comes alongside the official shutdown of Skype, marking the end of an era for the once-dominant communication platform.
The layoffs, expected to impact employees across multiple departments and regions, are part of Microsoft’s ongoing efforts to streamline operations and redirect resources towards emerging technologies like artificial intelligence (AI).
The company has committed to an $80 billion investment in AI infrastructure this fiscal year, reflecting a strategic shift toward next-generation computing.
A Microsoft spokesperson explained the decision, stating, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
The cuts will primarily affect software engineers, product managers, and mid-level management roles, with nearly 2,000 workers in Washington State alone receiving layoff notices.
This marks one of Microsoft’s largest rounds of layoffs since early 2023, when the company eliminated 10,000 positions as part of a similar restructuring effort.
In Australia, nearly 100 jobs are also at risk as part of the global downsizing, reflecting the widespread impact of the company’s cost-cutting measures.
Coinciding with the layoffs, Microsoft officially shut down Skype earlier this month. Acquired for $8.5 billion in 2011, Skype was once the world’s leading communication platform, popular for its voice and video calling services.
However, it has struggled to compete with more modern and integrated tools like Zoom, Google Meet, and Microsoft’s own Teams platform in recent years.
The decision to retire Skype is part of Microsoft’s broader push to consolidate its communication offerings around Microsoft Teams, which has become a critical tool for businesses and remote work globally. Despite its shutdown, Microsoft has clarified that the end of Skype did not directly result in the current round of layoffs.
Microsoft’s latest job cuts are part of a broader trend in the tech industry, where companies are increasingly focusing on AI and other emerging technologies while reducing costs. Analysts note that such restructuring efforts are necessary to offset the significant investments required to maintain competitive advantage in the rapidly evolving tech landscape.
As Microsoft moves forward with its AI-first strategy, the company has emphasized its commitment to innovation and efficiency, aiming to build agile, high-performing teams capable of driving future growth.
However, the layoffs highlight the difficult balancing act faced by tech giants as they navigate economic uncertainty and shifting market demands.
