Microsoft has announced plans to lay off 6,000 employees, representing nearly 3% of its global workforce, as part of an ongoing restructuring initiative.
This comes after the company employed 228,000 full-time workers as of June 2024, though specifics regarding which positions will be impacted have not been disclosed.
The layoffs are expected to affect staff at all levels and across multiple locations, with a particular focus on reducing management ranks. Notices were sent to affected employees on Tuesday.
In a statement, Microsoft explained that the job cuts are part of broader organizational changes aimed at positioning the company for success in a rapidly evolving marketplace.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the company said.
This move follows a smaller round of performance-based layoffs earlier this year. However, the 6,000 layoffs mark the largest reduction since Microsoft laid off 10,000 workers, or about 5% of its workforce, in early 2023.
Despite the job cuts, Microsoft remains financially strong, reporting strong sales and profits in its most recent quarter. Amy Hood, the company’s Chief Financial Officer, highlighted during an April earnings call that the focus is on building high-performing teams and increasing agility by reducing management layers.
Hood also noted that, as of March 2025, Microsoft’s headcount was 2% higher than the previous year, though it had slightly decreased from the end of 2024.
The layoffs come as Microsoft continues to adapt to the evolving tech landscape, capitalizing on the growing demand for artificial intelligence.
Despite challenges within the broader tech industry, Microsoft’s recent financial success offers a degree of relief.