In a significant workforce adjustment, Microsoft is set to lay off approximately 3% of its global workforce, affecting over 6,800 employees. The job cuts come as part of a wider organizational reshaping effort, not related to employee performance, the company confirmed.
With a total headcount of 228,000 employees as of June 2024, this marks Microsoft’s largest layoff round since it cut 10,000 jobs in 2023.
Layoffs Not Performance-Based
According to a report by CNBC, the layoffs span all levels, teams, and geographies. A Microsoft spokesperson stated, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
The company emphasized that this move is part of a long-term plan to enhance agility and competitiveness, especially in light of rapid shifts driven by artificial intelligence, cloud computing, and evolving customer expectations.
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Part of a Broader Tech Industry Trend
Microsoft’s decision comes amid a fresh wave of tech industry layoffs. Just last week, cybersecurity firm CrowdStrike announced it would cut 5% of its workforce, illustrating how even profitable companies are optimizing operations in response to a changing economy.
These layoffs also echo recent moves by Amazon, which attributed its workforce reduction to “unnecessary layers” of management—signaling a broader trend toward leaner corporate structures.
Financially Strong, But Streamlining
Despite the layoffs, Microsoft remains in robust financial health. For the quarter ending April 2025, the company reported a net income of $25.8 billion, surpassing analyst expectations. It also issued an optimistic outlook for the months ahead.
Still, the restructuring aims to streamline internal operations and reduce bureaucracy—reflecting Microsoft’s strategy to remain competitive in an increasingly fast-paced, AI-driven landscape.
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