Microsoft lays off 6,000 employees for billion-dollar AI "gamble"

May 13th became an "unforgettable" day for thousands of Microsoft employees around the world .

The layoffs began to roll in, marking a difficult but necessary decision for management. Washington State, where Microsoft is headquartered, was hit hardest, with nearly 2,000 employees leaving. These employees were mostly in key departments such as software engineers and product managers - people who had been the backbone of the corporation's growth.

This “reshuffling” spares no level, industry, or geographic region, but the spearhead seems to be aimed at “pruning” the middle management layers. Even seemingly solid businesses like Xbox or professional social network LinkedIn are not immune to the impact.

This is the first large-scale cut since early 2023, when Microsoft said goodbye to 10,000 employees (accounting for nearly 5% of the total workforce). Previously, in January this year, a smaller layoff based on work performance reviews also took place, as a precursor to larger changes.

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What has drawn special attention from observers is that the decision to lay off employees came just weeks after Microsoft announced first-quarter 2025 business results that far exceeded all expectations.

With revenue of $70.1 billion, up 13% year-over-year, Microsoft seemed to be bringing a rare breath of optimism to a technology industry that was struggling with many fluctuations and economic pressures. So, why would a thriving company decide to downsize its team?

Economists say layoffs do not necessarily mean financial hardship.

Daniel Zhao, an expert from Glassdoor, commented that large technology companies are in the process of restructuring and adjusting their strategies after a period of massive recruitment in the post-pandemic period. In fact, as of June 2024, Microsoft still maintains a strong team of about 228,000 full-time employees, of which 55% work in the US.

Microsoft's goal is to build "high-performing teams" and increase organizational adaptability by reducing layers of management, according to CFO Amy Hood.

She also said that the current number of employees has decreased slightly compared to the end of 2024. In an official statement, a Microsoft spokesperson emphasized: "We continue to make the necessary organizational changes to best position the company to achieve success in a dynamic market. To improve efficiency, we will minimize redundancy by streamlining our processes, procedures and roles."

Microsoft lays off 6,000 employees for billion-dollar AI gamble - 1

Microsoft has just shocked Silicon Valley and the entire technology industry when it suddenly announced it would cut nearly 3% of its global workforce, equivalent to 6,000 employees (Photo: AP).

"A day full of tears" and the AI gamble called the future

Behind strategic statements are very human emotions.

Scott Hanselman, Vice President of Microsoft, could not hide his emotion when sharing on LinkedIn: "For the first time, I had to fire someone for business goals that were not my own. These were people with dreams, with rent. I love them and hope they are okay." He bitterly admitted: "This is a tearful day."

Microsoft did not give a specific, single reason for the cuts, describing them as "part of organizational changes to better position the company in a volatile market." However, it is not difficult to see the shadow of the AI revolution looming over every decision the corporation makes.

In the fiscal year ending in June, Microsoft plans to spend a whopping $80 billion to build infrastructure to support AI development. CEO Satya Nadella once revealed the surprising information that about 20-30% of the source code in some internal projects is now written by AI. This strong investment shows that AI is not just a trend, but the future that Microsoft is determined to conquer.

However, expert Daniel Zhao believes that AI is not the direct and only cause of layoffs. "When companies talk about cutting management layers, it does not mean that ChatGPT will replace management," he analyzed. Instead, streamlining the management apparatus often reflects a long-term development strategy, focusing on flexibility and efficiency.

“During periods of rapid growth, companies need more managers to coordinate teams. But as growth slows, or as companies shift to new priorities like AI, people start to question the need for some of those positions, and look to restructure so resources are focused on key areas.”

In other words, Microsoft may be reallocating resources, cutting back in areas that are less prioritized or have a more cumbersome structure to focus on the AI "front", which requires new skills, leaner and more flexible team structures.

Belt tightening and long-term vision

Microsoft’s decision also reflects a broader trend in the tech industry: a period of “belt-tightening” after years of pandemic-fueled growth. While not directly affected by the Trump administration’s tariffs like many other tech companies with supply chains dependent on China, Microsoft must still consider potential long-term economic turmoil.

Economist Cory Stahle from Indeed offers an interesting perspective: "If consumers have to spend more on food due to tariffs or inflation, they will have less money to spend on electronics or game consoles. This could be a precautionary move, preparing for a more unpredictable economic future."

According to a notice sent to the Washington State Department of Labor, about 1,500 of the affected employees work directly at the office, while the rest work remotely. Their last day of work is scheduled for next July, opening a challenging period of searching for new opportunities.

Microsoft's latest round of layoffs is a complex demonstration of how even winning giants must constantly reinvent themselves, making painful decisions to adapt to a constantly changing technological world.

This is not simply about cutting costs, but a major overhaul to optimize the machine, focus all efforts on the decisive AI race and prepare for a global economic picture that still has many unknowns. Tears may have been shed in Redmond, but Microsoft’s vision seems to be looking far into a future where AI will reshape everything. The game has only just begun.

Source: https://dantri.com.vn/kinh-doanh/microsoft-sa-thai-6000-nhan-vien-cho-canh-bac-ai-ty-do-20250514104353451.htm