Although the company has not confirmed the exact number, it revealed that the n3ew round of layoffs would affect less than 4% of its global workforce. With Microsoft employing around 228,000 people as of June 2024, this could mean nearly 9,000 employees are being let go.
The layoffs are impacting several key divisions, including:
- Sales teams
- The Xbox gaming division
- Various international units
Second Major Layoff This Year
This is not the first round of job cuts in 2025. In May, Microsoft laid off approximately 6,000 employees, the largest reduction in over two years. The company cited increasing investments in Artificial Intelligence (AI) and internal reorganization as key reasons behind the downsizing.
In June, Microsoft cut another 300 roles at its Redmond, Washington headquarters. That followed the May layoffs of 2,000 workers in the Puget Sound region alone.
Company Statement: “Positioning for Success”
In a brief statement, Microsoft said:
“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace.”
This language reflects a broader shift seen across the tech industry as major players recalibrate in the face of AI disruption, economic uncertainty, and changing consumer demands.
Broader Trend in Big Tech
Microsoft’s job cuts come amid a larger trend of restructuring within the tech sector. Companies are trying to remain competitive by streamlining operations, investing heavily in generative AI, and preparing for long-term shifts in the global digital economy.
With back-to-back layoffs and continued automation investments, Microsoft appears to be preparing for a leaner, AI-driven future—but at a significant human cost.
