Microsoft has confirmed it is laying off approximately 6,000 employees — roughly 3% of its global workforce — in what marks the company’s most significant round of job cuts since 2023.
In a statement to CNBC, a Microsoft spokesperson said:
We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.
Despite reporting stronger-than-expected financial results in April — including a quarterly net income of $25.8 billion — the technology giant is undergoing broad workforce restructuring.
The company had a global headcount of 228,000 employees as of the end of June.
In filings with the State of Washington on Tuesday, Microsoft disclosed plans to reduce its headcount at its Redmond headquarters by 1,985 roles, including 1,510 office-based positions.
The latest cuts span all departments, teams, and levels across the company, including subsidiaries such as LinkedIn and its Xbox division. However, the primary focus is reported to be on reducing layers of management, according to the Associated Press.
This move follows earlier, smaller-scale layoffs in January that were reportedly linked to performance assessments. Unlike those, the current round is not performance-related, Microsoft clarified.
The company, headquartered in Redmond, Washington, remains the most valuable publicly traded company globally, with a market captalisation of $3.337 trillion at the time of the announcement.
The restructuring is closely tied to Microsoft’s aggressive push into artificial intelligence. The firm is reallocating resources towards its AI strategy, with plans to invest $80 billion in AI development during its 2025 fiscal year.
Across the tech industry, a trend towards streamlining management is gaining momentum. According to Business Insider, companies like Amazon are adjusting internal ratios to favour individual contributors over managers, while Google recently reduced vice president and managerial positions by 10% as part of broader efficiency measures.
Microsoft’s decision reflects both its strategic pivot towards emerging technologies and ongoing adjustments to a fast-evolving digital marketplace.
