Microsoft Corp. announced plans to reduce its workforce by approximately 5,000 positions over the next 18 months. The move is part of a broader restructuring initiative designed to streamline operations and improve the company’s competitiveness.

The job cuts will affect various areas of the company, including research and development, marketing, sales, IT, and finance. Microsoft stated that the reductions would be implemented in phases, with the majority of the cuts occurring in the current fiscal year.

Specific details regarding the impacted divisions and locations were not immediately disclosed. However, Microsoft emphasized its commitment to supporting affected employees through severance packages and outplacement services.

Company representatives explained that the restructuring is intended to allow Microsoft to focus on its core businesses and strategic priorities, such as cloud computing and enterprise services. By reducing redundancies and improving efficiency, the company aims to drive future growth and innovation.

The announcement reflects the challenging economic environment and increasing competition within the technology sector. Microsoft joins a growing number of companies undertaking similar cost-cutting measures in response to the global economic downturn.