Microsoft to lay off about 3% of its workforce

Core Viewpoint - Microsoft is laying off nearly 3% of its workforce, amounting to about 6,000 jobs, marking its largest mass layoff in over two years [3][5][6]. Group 1: Layoff Details - The layoffs will affect approximately 6,000 employees, including 1,985 in Washington state [3][4]. - Microsoft employed 228,000 full-time workers as of June, with about 55% based in the U.S. [4]. - The layoffs will span all levels and geographies, primarily focusing on reducing the number of managers [4][7]. Group 2: Context and Reasons - This round of layoffs follows a smaller performance-based layoff in January and is the largest since early 2023 when 10,000 workers were cut [5][6]. - The company did not specify reasons for the layoffs but indicated they are part of necessary organizational changes to position itself for success in a dynamic marketplace [8]. Group 3: Financial Performance and Future Investments - Microsoft reported strong sales and profits for the January-March quarter, exceeding Wall Street expectations, which provided some relief amid a turbulent tech sector [6]. - The company is investing $80 billion in the fiscal year ending in June to build data centers and infrastructure for its artificial intelligence technology [9].