Why Microsoft is laying off 6,000 employees, including its AI chief, despite record profits

For several months now, digital giants have been unhesitating about carrying out mass layoffs, even to the point of worrying the stock markets. This was the case for Google, which laid off 6.4% of its workforce in January 2023, or 12,000 employees, and more recently for Meta, which laid off 5% of its workforce, with 3,600 employees, last January.

Now, it's Microsoft's turn to share some bad news, with the announcement of 6,000 employees laid off this week, or nearly 3% of its workforce worldwide.

AI Director fired by Microsoft

While the company has continued to invest in highly innovative technologies in recent years, starting with artificial intelligence with OpenAI, this news is a real bombshell in tech...

Indeed, as she announced on social media, even Gabriela de Queiroz, who was director of AI at Microsoft, was impacted by this upheaval.

A strategic move for Microsoft?

With such a decision, Microsoft understands that this could have serious consequences for its stock market listing. Indeed, as Microsoft told CNBC, this decision should not be taken as a bad sign of the company's health.

On the contrary, Microsoft seems to be revitalizing its structure and offering a more "agile" framework to its teams. Furthermore, the latest published results show a net profit of $25.8 billion for the last quarter, which is much more than investors expected.

Through this decision, the company wants to separate itself from the many layers of management typical of large international groups. Faced with companies like OpenAI that manage to maintain a certain agility, while having a rapid and efficient progression, this could be a new trend in the digital market…

Last-minute layoffs that are worrying

Even if Microsoft spokespersons want to be very reassuring about the health of the company, the testimonies of the employees affected by this wave of layoffs are cause for concern.

In a message posted on the professional social network LinkedIn this Tuesday, which also belongs to Microsoft, former employees lifted the veil on how the events took place.

Among the most striking messages, that of Carsolina Walton is one of the most disturbing. According to the former manager, the interview to inform her of her dismissal was given to her only a few minutes before the announcement...