Microsoft to Lay Off 6,000 Employees, 3% of Workforce

Microsoft announced on Tuesday that it will lay off approximately 6,000 employees, representing about 3% of its global workforce. The cuts affect employees across all levels, teams, and geographies.

The company said the layoffs are part of ongoing efforts to streamline operations and adjust to a changing market environment.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement.

Largest Layoffs Since 2023

Microsoft had 228,000 employees as of June last year. This is the company’s largest round of layoffs since it cut 10,000 roles in 2023.

As part of the new job cuts:

• 1,985 roles are being eliminated in Washington State, including 1,510 positions at Microsoft’s Redmond headquarters.

The company clarified that the layoffs are not performance-based.

Focus on Reducing Management Layers

Microsoft said one of the main goals is to reduce layers of management, a strategy similar to recent actions taken by other major tech companies like Amazon.

Strong Financial Results, Strategic Shift

Despite the layoffs, Microsoft recently reported strong financials:

• $25.8 billion in quarterly net income

• An upbeat forecast shared in late April

CEO Satya Nadella has emphasized making sales execution changes, especially after slower-than-expected growth in non-AI Azure cloud revenue.

“At a time of platform shifts, you want to lean into new design wins,” Nadella said earlier this year.

Stock Performance

Microsoft shares closed at $449.26 on Monday, the highest level of 2025 so far. The stock last closed at a record high of $467.56 in July 2024.