Microsoft has announced plans to lay off 6,000 workers as part of a broader organizational restructuring aimed at enhancing operational efficiency.
The layoffs represent nearly 3% of the company’s global workforce, which numbered 228,000 full-time employees as of June 2024. While specific details on which roles will be affected were not provided, the cuts are expected to impact employees across various levels and locations, with a particular focus on reducing management ranks. Notices were sent to affected workers on Tuesday.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft stated.
This move follows a smaller round of performance-based layoffs earlier in the year, but the 6,000 job losses mark the largest reduction since Microsoft let go of 10,000 employees, or about 5% of its workforce, in early 2023.
Despite the cuts, Microsoft has maintained its financial strength, reporting solid sales and profits in its most recent quarter.
Amy Hood, Microsoft’s chief financial officer, emphasized the company’s focus on building high-performing teams and enhancing agility through a reduction in managerial layers. Hood also noted that, as of March 2025, Microsoft’s headcount was 2% higher than the previous year, although slightly down from the end of 2024.
These layoffs come as Microsoft continues to adapt to changes in the tech industry, capitalizing on the growing demand for artificial intelligence, while navigating broader challenges facing the sector.
