Microsoft to Lay Off 6,000 Employees in Major Workforce Reduction
Microsoft announced on Tuesday that it will lay off approximately 6,000 employees—about 3% of its global workforce—affecting staff across all levels, teams, and regions.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson told CNBC.
The layoffs come despite the company reporting strong financial performance, including $25.8 billion in net income for the most recent quarter and a positive outlook shared in April.
As of the end of June, Microsoft employed 228,000 people worldwide. On Tuesday, the state of Washington, where Microsoft is headquartered, reported that 1,985 of those cuts would impact local employees, with 1,510 losing in-office positions.
This appears to be Microsoft’s largest round of layoffs since it cut 10,000 roles in 2023. In January, the company carried out a smaller round of performance-based layoffs, but the latest reductions are not related to employee performance, according to the spokesperson.
One goal of the restructuring is to streamline management by eliminating unnecessary layers, a strategy echoed by other tech giants like Amazon, which announced similar steps earlier this year.
Other companies in the tech sector are also making workforce adjustments. Last week, cybersecurity firm CrowdStrike said it would reduce its workforce by 5%.
Microsoft CEO Satya Nadella recently told analysts that changes in sales execution were necessary after Azure’s cloud revenue—excluding AI-related services—grew more slowly than expected. However, growth in AI-related cloud services exceeded internal projections.
“At a time of platform shifts, you want to make sure you lean into new design wins, and not just stick with what worked in the past,” Nadella said.
On Monday, Microsoft shares closed at $449.26, their highest level so far in 2025. The stock previously hit a record high of $467.56 in July 2024.
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