Company transformation update
Amy Coleman, Executive Vice President and Chief People Officer, has communicated an important update to employees. She reiterated her commitment to transparency, explaining the rationale behind recent decisions.
Today, Microsoft is reducing approximately 4,800 positions, representing 2.1% of its global workforce. This move is intended to concentrate resources, investments, and efforts on key priorities to maintain the company’s competitive edge in a rapidly evolving industry. The roles affected include valued colleagues who have made significant contributions, and Microsoft is grateful for their dedication.
While acknowledging the difficulty of these decisions, Amy emphasized the ongoing efforts to minimize job reductions. The company prioritizes reassigning employees to new roles that align with strategic focus areas. Over the past year, more than 4,000 employees have been transitioned to new positions, with an additional 500 redeployments occurring this month. Moreover, four gaming studios will be placed under new management to preserve intellectual property and ongoing projects.
The company also recently implemented a voluntary retirement program, with over 30% of eligible employees participating. Microsoft plans to continue exploring such initiatives to reduce layoffs, while providing support with care and respect to those impacted.
Amy highlighted that these changes are driven by the transformation in technology and customer needs, which requires Microsoft to adapt its operations. The shift to automation and AI is altering daily work, necessitating continuous learning and skill development among employees to stay relevant and meet customer expectations.
While AI is not replacing the eliminated roles, it is reshaping how work is performed. The company’s commitment focuses on making tough decisions to deliver unique customer value while supporting affected employees. Efforts include investing in skill development, particularly in AI, and providing financial assistance and resources for transitions.
Employees are encouraged to support affected colleagues by connecting them with new opportunities. Further changes are expected across other business areas as part of this ongoing transformation journey. Amy expressed confidence in the resilience, creativity, and adaptability of Microsoft employees, who have driven the company’s reinvention over the years.
Thank you for your ongoing contributions to Microsoft.
Sincerely,
Amy
