Microsoft is downsizing its workforce in the US, and these job reductions are distinct from the global layoffs announced earlier this year in January.

A recent report from Geek Wire stated that Microsoft is cutting 158 jobs in Redmond, the location of its headquarters, as indicated in a new filing with the state Employment Security Department (ESD). The layoffs began on May 5th.

“Organisational and workforce adjustments are a necessary and regular part of managing our business,” a Microsoft spokesperson was quoted as saying.

“We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners,” the spokesperson added

No salary hike 

As per reports, Microsoft CEO Satya Nadella informed employees that they would not be receiving a salary increase this year, and the recent job cuts were announced the following day.

“We are clear that we are helping drive a major platform shift in this new era of Al, and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” Nadella reportedly said in his email to employees.

Nonetheless, employees will be receiving bonus and stock awards. “We will maintain our bonus and stock award budget again this year, however, we will not overfund to the extent we did last year, bringing it closer to our historical averages,” the Microsoft CEO added.