Microsoft’s push for efficiency placed a heavy emphasis on eliminating layers of management, but layoff data from this week showed managers didn’t bear the brunt of job cuts.
The Redmond, Washington-based software maker last week announced it was letting go of more than 6,000 employees companywide, representing about 3% of its workforce. In Washington state, Microsoft laid off 1,985 workers.
A Microsoft spokesperson said the layoffs weren’t performance-based but rather part of an overall strategy to streamline the corporate ranks and flatten management across the company.
Microsoft’s push for what it calls nimble teams is part of an industry trend, as tech companies increase spending on artificial intelligence and restructure entire divisions.
At Microsoft, employees describe an increased emphasis on AI in their daily work. Some said they’ve felt a shift over the past year, with more pressure to incorporate AI into their role rather than view it as a helpful tool.