Microsoft has started the process of laying off about 6,000 people, or close to 3% of its whole workforce, the company said Tuesday.
Microsoft said the cuts will focus on management roles, applying to all levels and regions of the company, from career site LinkedIn to the Xbox gaming division.
It said notices to affected employees were sent starting Tuesday.
Microsoft said the cuts were "organizational changes necessary to best position the company for success in a dynamic marketplace.”
Chief financial officer Amy Hood said in the company's most recent earnings call its objective was "increasing our agility by reducing layers with fewer managers."
The cuts are the largest for the company in more than two years. In 2023, it laid off 10,000 workers as it reduced headcount from pandemic-era highs.
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Meanwhile, Microsoft has spent $80 billion in the fiscal year on infrastructure for artificial intelligence applications.
As AI tools improve, they may reduce the amount of work needed from employees. Microsoft CEO Satya Nadella said in April that AI software had written as much as 30% of the code in some of Microsoft's projects.
