May 20, Kathmandu- Technology giant Microsoft has announced plans to lay off approximately 6,000 employees this year, representing about 3 percent of its global workforce. The company disclosed this decision on Tuesday as part of its efforts to streamline operations and adapt to a shifting market landscape.

The layoffs will affect employees across all levels, from entry-level staff to senior management, and will span all geographic regions. A Microsoft spokesperson stated, "We are making organizational changes that will better position the company to succeed in a changing market."

As of June 2024, Microsoft employed around 28,000 people worldwide, suggesting that up to 6,800 employees could be impacted by the upcoming cuts. This marks the largest reduction in workforce since the company reduced 10,000 employees in 2023.

Microsoft has clarified that this time the layoffs are not performance-based, meaning that those losing their jobs are not being fired due to their work. The company's goal is to simplify operations by reducing management layers.

Despite the layoffs, Microsoft has reported better-than-expected quarterly results in April 2024, with positive guidance for the future. The decision to trim the workforce indicates a focus on optimizing resource efficiency amid a competitive tech environment.

In the financial markets, Microsoft’s shares closed at $449.26 on Monday, reaching their highest point of the year. The company's stock previously hit a record high of $467.56 in July 2023.