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Microsoft Cuts 9,000 Roles in Second Major Layoff of 2025

The cuts target excess management layers across business units to boost agility, aligning expenses with the company’s focus on AI, cloud development.

Microsoft is laying off 9000 employees in its latest cut
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Overview

  • Microsoft is eliminating approximately 9,000 positions across its global workforce, accounting for just under 4% of its 228,000 employees.
  • This round focuses on reducing middle management layers across divisions to streamline decision-making and increase responsiveness.
  • Sales teams, the Xbox gaming business and studios including King are among the units most affected by the cuts.
  • Impacted employees will receive severance pay, extended healthcare coverage and job placement assistance, with priority consideration for openings in Microsoft Gaming.
  • These reductions bring total layoffs since January 2024 to over 15,000 even as Microsoft’s latest quarter reported $25.8 billion in net income and 18% year-on-year profit growth.