Layoffs Impact Nearly 4% of Global Workforce
Microsoft has confirmed it will lay off approximately 9,000 employees, amounting to just under 4% of its global workforce. The job cuts were announced on Wednesday and affect workers across all departments, regions, and experience levels. This marks the latest—and one of the largest—reductions, following prior layoffs earlier in 2025 that have already seen over 15,000 positions eliminated in total[1][3][5].
Restructuring for Efficiency
These layoffs are part of Microsoft’s broader effort to streamline operations and build higher-performing, more agile teams. A company spokesperson stated, “We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace.” This approach focuses on reducing management layers, with an aim to simplify team structures and decision-making[3][5].
Ongoing Adjustments Throughout 2025
The new round of cuts follows previous layoffs in:
- January 2025: Approximately 1% of staff let go
- May 2025: Around 6,000 employees affected
- June 2025: A further 305 workers impacted
As a result, the tech giant has cut more than 15,000 roles within the first half of 2025 alone, from a global workforce of about 228,000 prior to these reductions[1][3][5].
A Shift Toward New Technologies
Although Microsoft has not explicitly tied these layoff decisions to its investment in artificial intelligence, industry observers note a correlation. Previous cuts have disproportionately impacted software engineers—coinciding with Microsoft’s aggressive investment in AI-powered tools that automate coding and other tasks. As the company increasingly encourages employees to leverage new AI technologies, it aims to enhance productivity and focus on work deemed most meaningful[3][5].
Looking Ahead
The most recent layoffs occurred just after the end of Microsoft’s fiscal year on June 30, a traditional period for operational reassessment. However, the scale and frequency of job cuts in 2025 stand out even against historical precedent. As Microsoft continues its push for efficiency and digital transformation, its ongoing restructuring is reshaping not just its workforce but the broader industry landscape[5].
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