Microsoft Lays Off Over 6,000 Employees Worldwide.

Microsoft has announced layoffs that will impact more than 6,000 employees globally as part of its latest effort to streamline operations and accelerate the development of artificial intelligence (AI). This massive cut, which accounts for about 3% of the company's worldwide workforce, coincides with a major revision to internal rehiring procedures. These changes indicate higher performance expectations and a more acute competitive edge in the rapidly changing technology landscape as the tech giant shifts its focus back to AI and cloud computing.

AI-Centric Restructuring and Strategic Priorities

Microsoft's desire to be a leader in AI innovation is the main factor behind its decision to eliminate over 6,000 positions. CEO Satya Nadella has pushed for significant investments in AI capabilities over the past year, including a multibillion-dollar investment in OpenAI and the quick rollout of Copilot and other AI-powered features throughout Microsoft 365. Microsoft wants to strengthen its position against competitors like Google and Amazon Web Services by shifting resources from non-core divisions to AI and cloud infrastructure.

Marketing, sales support, and legacy product teams are among the roles that are impacted. According to insiders, the functions with lower growth trajectories were the most vulnerable, though the company has not revealed the precise breakdown. Microsoft has also promised up to $1.5 billion in benefits and severance packages, including extended health insurance and help finding new jobs for affected workers.

Tougher Rehiring Rules and Performance Accountability

In addition to reducing its workforce, Microsoft is enforcing more stringent rehiring standards for former workers. Candidates who were fired or who received underperformance warnings will be subject to more scrutiny if they reapply under the updated policy. The bar for reentry will be raised since hiring managers will have access to previous performance reviews and the reasons for termination.

This change in policy demonstrates Microsoft's commitment to accountability. The organization aims to foster a culture where consistent contributions and excellence are requirements for employment by tying rehiring eligibility to prior performance. According to analysts, this could discourage "boomerang hires" who might otherwise go back to comfortable positions and strengthen a meritocratic workplace that supports Microsoft's AI-driven expansion goals.

India Remains Unaffected Amid Continued Investment

Microsoft's operations in India are exempt from layoffs despite global cuts. No jobs in the region will be lost, according to Microsoft India and South Asia President Puneet Chandok. Microsoft, on the other hand, is increasing its investments in the Indian market by double: it has a $3 billion plan to build more cloud data centres and start AI skilling programs that will train 10 million professionals by 2030.

Microsoft's operations in India are exempt from layoffs despite global cuts. No jobs in the region will be lost, according to Microsoft India and South Asia President Puneet Chandok. Microsoft, on the other hand, is increasing its investments in the Indian market by double: it has a $3 billion plan to build more cloud data centres and start AI skilling programs that will train 10 million professionals by 2030..

Source : Techgig