Microsoft to Lay Off 7,000 Employees Globally Amid AI Push

Microsoft, the tech giant, is set to cut about 7,000 employees around the world, a CNBC report has said. The software giant has already eliminated about 10,000 jobs since 2023. The new wave of cuts is said to be part of the overall plan to rationalise operations since the company is still scaling up its investments in Artificial Intelligence (AI).

As a part of this reorganisation, the company will reduce its overall workforce by approximately 3%. Microsoft has not announced anything officially on these reports, however.

Microsoft has recently introduced two alternatives for workers who have demonstrated below-average levels of performance. The first is the Performance Improvement Program (PIP), where workers are requested to assume rigorous goals and strive to enhance their skills in a bid to prove their professional competence. The second option allows workers to exit the company voluntarily by receiving a severance package. Microsoft is offering 16 weeks of pay to those who choose to exit voluntarily. Employees must make a choice and inform the company of their choice within five days.

In case the employee does not improve throughout the PIP, the company has decided to impose a two-year rehire ban, which prevents them from coming back to Microsoft. Also, according to this policy, low-performing employees will not be transferred to other projects in the company.

Earlier this year, Microsoft had laid off approximately 2,000 employees for underperformance. Officials in the company said these new measures are intended to improve accountability and performance but also to continue offering stable and transparent services globally.