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Microsoft Announces 3% Workforce Reduction, Impacting 6,000 Employees

The company aims to streamline operations by reducing management layers and reallocating resources toward AI and cloud growth.

A man looks at his phone in front of the Microsoft logo during the 2025 Mobile World Congress (MWC) in Barcelona, Spain on March 3.
Microsoft CEO Satya Nadella smiling.
FILE - A Microsoft sign and logo are pictured at the company's headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP Photo/Jason Redmond, File)

Overview

  • Microsoft confirmed plans to lay off approximately 6,000 workers, representing 3% of its global workforce of 228,000 employees.
  • The layoffs span all levels, teams, and geographies, including LinkedIn, and are not tied to employee performance.
  • This marks Microsoft's largest workforce reduction since cutting 10,000 jobs in 2023 during a broader tech industry downturn.
  • The company is focusing on increasing organizational agility by reducing management layers and prioritizing high-growth areas like AI and cloud services.
  • The layoffs align with a broader trend across the tech sector, as firms recalibrate operations to address economic uncertainty and evolving technologies.