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Microsoft Cuts 9,000 Jobs in Third Layoff to Support AI Expansion

Scheduled for day one of its new fiscal year, the cuts free up funds for Microsoft’s $80 billion AI infrastructure build-out.

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 9, 2025.
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Overview

  • Microsoft is laying off about 9,000 employees, under 4% of its 228,000-strong workforce, in its latest round of reductions.
  • This marks the company’s third major workforce cut in 2025 after 6,000 roles were eliminated in May and roughly 300 more in June.
  • The latest wave targets customer-facing sales and marketing roles and includes about 200 job losses at King alongside cuts at ZeniMax.
  • Chief Commercial Officer Judson Althoff begins a planned eight-week sabbatical and is set to resume his duties in September.
  • The restructuring is designed to remove management layers and redirect investment into AI and data-center expansion.