Microsoft cuts 4% of its global workforce, seeking new efficiencies

Microsoft is laying off 4% of its global workforce, including 830 jobs in Washington state.

The 4% in cuts represent approximately 9,000 Microsoft employees. The Washington State Employment Security Department revealed that the 830 cuts, or 9.2% of the 9,000 layoffs, are from the tech giant's corporate headquarters in Redmond and Bellevue.

The workforce reduction mostly impacts the company’s sales division and video game division.

Since May 13, Microsoft has announced a total of 3,120 cuts to its workforce in Washington, including an initial 1,985 workers. The company cut an additional 305 workers based in Redmond last month.

The company regularly adjusts its workforce to meet strategic demands of the business. The latest wave of layoffs was made to enhance company efficiency, according to a Microsoft spokesperson, who said the company will minimize redundancies by streamlining processes, procedures and roles.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson told The Center Square in an email.

The cuts come within the same year as the company seeks to implement artificial intelligence, or AI. At the beginning of the year, Microsoft Vice Chair and President Brad Smith said that the company is on track to invest approximately $80 billion to build out datacenters that will train and deploy AI and cloud-based applications around the world.

“More than half of this total investment will be in the United States, reflecting our commitment to this country and our confidence in the American economy,” Smith said in a blog post on Jan. 3.

The 830 Washington layoffs will go into effect on Aug. 31.