Microsoft Layoffs: Tech giant lays off thousands of Bay Area engineers after CEO says up to 30% of code created by A.I.!
Microsoft has laid off over 6,000 employees, or roughly 3% of its global headcount, as part of a sweeping structural shift to align its operations with its fast-growing AI ambitions.
The layoffs come despite a strong quarterly report boasting $70.1 billion in revenue — a 13% rise year-on-year — and $25.8 billion in net profit. With performance numbers like these, many are asking: why the cuts?
Behind the figures lie cold calculations. Microsoft's $80 billion investment in AI infrastructure is fuelling mounting depreciation costs estimated at $15–20 billion annually. These expenses have already pushed gross margins down from 72% to 69%, a drop that spooked investors accustomed to consistent 70%+ returns.
To regain margin stability and keep Wall Street onside, the company moved to reduce high-cost ..
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