Overview

• The layoffs represent nearly 4% of Microsoft’s 228,000-person workforce and mark its second major reduction of fiscal 2025.
• Affected roles include sales staff, Xbox gaming teams and other global business units.
• Phil Spencer and other leaders describe the cuts as part of an effort to flatten management layers and boost operational agility.
• The announcement coincides with Microsoft’s commitment of $80 billion to AI and cloud data centers this fiscal year.
• The company has eliminated over 15,000 positions since January 2024, mirroring similar workforce reductions at other technology giants.