Microsoft to Lay Off Over 6,000 Employees Amid Strategic Restructuring
- Microsoft is laying off approximately 6,000 employees, about 3% of its global workforce, across all levels, teams, and regions.
- Microsoft had 228,000 employees globally at the end of June.
- Nadella also highlighted the importance of adapting go-to-market strategies during times of platform shifts.
In a significant workforce shake-up, Microsoft announced that it will lay off approximately 6,000 employees about 3% of its global workforce across all levels, teams, and geographies. The tech giant said the move is part of ongoing organizational changes aimed at positioning the company for long-term success in a dynamic and competitive market.
A Microsoft spokesperson told CNBC, “We continue to implement organizational changes necessary to best position the company for success”. The company emphasized that the layoffs are not performance-related but are instead focused on streamlining operations and reducing layers of management.
The decision follows Microsoft's stronger-than-expected earnings report in late April, where it posted $25.8 billion in quarterly net income and issued a positive forecast. As of the end of June, Microsoft employed around 228,000 people globally. On Tuesday, the state of Washington reported that 1,985 of the job cuts are tied to the company’s Redmond headquarters, including 1,510 in-office positions.
This marks Microsoft’s largest round of layoffs since 2023, when it eliminated 10,000 roles. Earlier this year, a smaller, performance-based layoff round was conducted. These latest cuts, however, reflect broader structural changes rather than individual performance issues.
The layoffs come at a time when other tech giants like Amazon and CrowdStrike are also trimming their workforces to reduce complexity and improve efficiency. Microsoft CEO Satya Nadella previously signaled a strategic shift in sales execution following slower-than-expected Azure cloud growth, not tied to AI, despite AI-related cloud services exceeding expectations.
Despite the cuts, investor confidence remains strong. On Monday, Microsoft shares closed at $449.26, their highest level in 2025 so far just shy of the record $467.56 reached in July 2024.
