Overview

• Over 15,000 positions—about 7% of Microsoft’s global workforce—were eliminated in 2025, including roughly 9,000 roles in July, marking the steepest cuts since 2014
• The company reported strong profits and maintained overall headcount by hiring selectively in critical AI and cloud roles
• In a July memo, Nadella called the reductions “among the most difficult” decisions, framed them as the “enigma of success,” and expressed sincere gratitude to departing staff
• Microsoft has allocated $80 billion to expand AI infrastructure, including data centers and platform tools, and plans to integrate AI across every product
• Under Nadella’s redefined vision, Microsoft will pivot from a “software factory” to an “intelligence engine” with core priorities on security, quality, AI transformation