Microsoft Cuts 8K Jobs in 2025's 4th Round of Layoffs

Core Viewpoint - Microsoft is cutting nearly 9,000 jobs, representing under 4% of its workforce, as part of ongoing organizational changes to enhance agility and effectiveness in a dynamic marketplace [2][3]. Group 1: Job Cuts and Workforce Impact - The job cuts will affect nearly 8,800 positions based on a workforce of 228,000 employees in mid-2024, following previous reductions earlier in the year [3]. - The company has made routine adjustments to its workforce to align with strategic demands, even during stable periods [3]. - The recent layoffs follow a 1% performance-based reduction in January, 6,000 cuts in May, and approximately 300 in June [3]. Group 2: Strategic Focus and Management Changes - The cuts aim to reduce management layers, allowing employees to focus more on meaningful work by leveraging new technologies [3]. - Phil Spencer, CEO of Microsoft's gaming division, indicated that the company will end or decrease work in certain areas to focus on strategic growth and increase agility [4]. Group 3: Industry Context - The layoffs at Microsoft occur alongside similar cuts at other major companies, including JPMorgan Chase, Morgan Stanley, and Wells Fargo, as well as Walmart's plan to cut around 1,500 jobs [5]. Group 4: AI Developments - Microsoft announced that its AI Diagnostic Orchestrator (MAI-DxO) achieved an 85% accuracy rate in diagnosing complex cases, significantly outperforming the average accuracy of 20% among physicians in a study [6]. - The company emphasized the importance of trust in AI performance for both clinicians and patients [7].