“Microsoft” reduces the number of its employees again and with large numbers .. What is the story?

Microsoft has not achieved specialized expectations as it was hoped, as the Azur unit announced only 31% growth in revenue, which reflects increasing challenges in financial performance, despite the company’s continued expansion of its investments. This performance came after the announcement of a new wave of layoffs in May, where “Microsoft” is now released by a large number of employees, with the adoption of a disbursement system for employees with weak performance, according to a report issued by the Business Insider website.

The new “Microsoft” demobilization system

Under the new system, low -performance employees are granted a voluntary resignation option for a 16 -week salary, provided that the decision is made within only five days of receiving the offer.

Those who refuse to offer, they will be placed in the performance improvement plan, a step that greatly increases the risk of separation later. It is striking that the employees who enter the improvement plan will not be eligible for financial compensation.

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Why does Microsoft reduce the numbers of its employees?

The current Microsoft discounts are part of efforts to simplify its organizational structure.
Amy Coleman, the company’s chief human resource official, described this process as “transparent”, stressing that the goal is to address the concerns related to performance clearly.

Among the measures taken:

• Preventing employees who start the improvement plan and then leave later, whether with resignation or separation, from returning to work in Microsoft for two years.

• Denying these employees of internal transfers throughout this period.

According to the data of the “Terab” platform specialized in tracing workers’ demobilization, the technology sector has recorded 234 layoffs so far this year, which affected 45,656 employees, at a rate of 439 employees per day.

In a remarkable comparison, the year 2024 witnessed the demobilization of 1,115 technological companies, which affected 238,461 employees, at a rate of 653 layoffs per day.

Expansion of artificial intelligence against revenue pressure

While Microsoft seeks to expand its investments strongly in the areas of artificial intelligence and cloud computing, its recent financial results reveal a mixture of growth and pressure.

The “Azur” unit has announced a growth of 31% in revenues for the second quarter of the fiscal year, which is slightly less than the expectations of “Vizabelle Alpha”, which amounted to 31.8%.

As for the smart cloud computing department, which includes Azur, its revenues amounted to about $ 25.54 billion, without expectations of $ 25.76 billion.

Despite this relative decline in some departments, Microsoft made a total leap in revenue by 12% on an annual basis, to reach 69.6 billion US dollars, exceeding expectations that were indicating 68.78 billion dollars, according to LSEG data.

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Does artificial intelligence succeed in compensating Microsoft’s results?

Microsoft’s extensive layoffs and restructuring in Microsoft reflects its deep ambition of leadership in the field of artificial intelligence, while continuously seeking to control costs and align the workforce with new strategic targets.

Despite these ambitious moves, the realistic results indicate to the moment that artificial intelligence has not yet succeeded in filling the financial gaps facing the company in full, leaving a state of ambiguity and questioning about Microsoft’s ability to achieve a qualitative financial leap in the near future.