Microsoft announced on Tuesday that it will lay off around 6,000 employees-just under 3% of its global workforce-in its largest round of job cuts since 2023. The move is part of a broader effort to streamline management layers and enhance operational efficiency as the tech giant adapts to ongoing changes in the market and rising costs across the industry.
The layoffs will impact employees across all levels, teams, and geographies, including major divisions such as Xbox and LinkedIn. The company’s Redmond, Washington headquarters will see nearly 2,000 roles eliminated, with many affected employees working in software engineering and product management. Microsoft emphasized that these cuts are not performance-related but are aimed at reducing the number of managers and minimizing redundancy in processes, procedures, and roles.
A company spokesperson stated, “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.” The restructuring comes just weeks after Microsoft reported strong quarterly earnings, driven by robust growth in its Azure cloud and artificial intelligence businesses.
Despite the positive financial results, Microsoft is proactively adjusting its workforce to remain agile and competitive, particularly as it invests heavily in AI infrastructure and navigates the complexities of a rapidly evolving tech landscape.
The decision follows a broader trend of mass layoffs in the technology sector, with more than 50,000 jobs lost in the industry in the first five months of 2025 alone. Microsoft’s last major workforce reduction occurred in 2023, when it cut 10,000 jobs globally.
By reducing management layers, Microsoft aims to increase agility, empower employees to leverage new technologies, and position itself for continued leadership in cloud and AI innovation. The company maintains that these organizational changes are essential for sustaining growth and delivering value to customers in a highly dynamic environment.
