Microsoft is laying off more than 6,000 employees, accounting for around 3% of its global workforce, in one of the company’s most significant rounds of job cuts since 2023. The announcement came on Tuesday, and marks a major move in Microsoft’s ongoing efforts to streamline operations amid shifting market dynamics.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” said Microsoft spokesperson Pete Wootton in a statement.
Layoffs Affect All Levels and Departments
The latest job cuts are expected to affect teams across all levels of Microsoft’s operations. Reports indicate that employees at Microsoft-owned LinkedIn and international offices are among those impacted. This wave of layoffs follows months of “performance-based” reductions and comes amid Microsoft’s broader strategy to reduce layers of management.
In an earnings call on April 30, Microsoft CFO Amy Hood hinted at these changes, stating the company is aiming to “build high-performing teams and increase agility by reducing layers with fewer managers.”
Despite these reductions, Microsoft continues to invest heavily in emerging tech areas, including artificial intelligence, with partnerships like OpenAI and expansions in its Azure cloud business.
What This Means for Microsoft
The Microsoft layoffs 2025 are part of a strategic reorganization aimed at cutting redundancies, flattening management structures, and improving operational efficiency in an increasingly competitive tech landscape. While the company remains financially strong, the move underscores how even industry giants are re-evaluating their structures to stay agile.