Microsoft to lay off thousands of employees as it cuts workforce by 3%

Microsoft

Microsoft is laying off 3% of its global workforce in a new round of job cuts that spans all levels, teams, and geographies. With a total headcount of 228,000 as of June, the move will affect several thousand employees — roughly over 6,800 — marking the company’s largest workforce reduction since it cut 10,000 roles in 2023.

According to a report by CNBC, the layoffs are not performance-based. A Microsoft spokesperson told CNBC that these layoffs are part of a broader organizational reshaping effort. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson told CNBC.

Microsoft’s layoffs come amid a renewed wave of job cuts across the tech industry. Just last week, cybersecurity firm CrowdStrike announced a 5% reduction in staff, underscoring how even profitable tech giants are optimising headcounts in response to changing business conditions.

While Microsoft has not disclosed specific roles or departments affected, the company emphasised that the cuts are part of a long-term strategy to stay agile and competitive in a fast-moving market increasingly shaped by AI, cloud computing, and evolving customer demands.

Despite the cuts, Microsoft remains financially strong. The company reported $25.8 billion in net income for the quarter ending in April—exceeding analyst expectations—and issued an upbeat forecast for the months ahead. However, the restructuring is aimed at streamlining operations and reducing managerial layers, echoing similar moves by peers like Amazon, which cited “unnecessary layers” when it recently trimmed its own workforce.