Microsoft is reportedly cutting nearly 8,000 to 9,000 jobs in a new round of layoffs, as part of its ongoing strategy to restructure and adapt to a changing tech landscape.
While the company has not confirmed the exact number, it stated that the layoffs will affect less than 4% of its global workforce.
With around 228,000 employees as of June 2024, this means thousands are being let go.
Major Divisions Affected
The job cuts are impacting several key areas of Microsoft, including:
- Sales teams
- The Xbox gaming division
- Various international business units
Second Major Round of Layoffs in 2025
This is not Microsoft’s first round of layoffs this year. In May 2025, the company let go of around 6,000 employees, the biggest layoff in more than two years.
Microsoft cited increased investment in Artificial Intelligence (AI) and internal restructuring as key reasons.
In June, the company eliminated 300 more roles at its Redmond, Washington headquarters.
These followed the May layoffs, where 2,000 jobs were cut in the Puget Sound region alone.
Official Statement: ‘Positioning for Success’
In a short statement, Microsoft said: “We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace.”
This statement reflects Microsoft’s strategy to adapt quickly to market shifts, particularly in response to growing competition and rapid advancements in AI.
Tech Industry Trend: Leaner, AI-Focused Companies
Microsoft’s layoffs are part of a broader big tech trend. Many tech companies are:
- Restructuring operations
- Investing heavily in generative AI
- Reducing costs in response to changing consumer behavior and economic challenges
As the company pivots toward an AI-driven future, it is becoming more focused and streamlined.
However, this shift comes at a significant human cost, with thousands of employees losing their jobs in the process.
