Microsoft Announces 9,000 Job Cuts in Latest Workforce Restructuring
Redmond, WA – Microsoft Corp. revealed plans on Wednesday to reduce its workforce by approximately 9,000 employees, marking its latest round of layoffs in 2025. The cuts, affecting less than 4% of its global workforce, will span multiple teams, regions, and experience levels, according to a source familiar with the matter.
The announcement coincides with the start of Microsoft’s 2026 fiscal year, a period when the company typically implements organizational changes. A Microsoft spokesperson stated, “We are making strategic adjustments to better align our teams with evolving market demands and position the company for long-term success.”
This decision follows several workforce reductions earlier in the year. In January, Microsoft trimmed less than 1% of its staff based on performance reviews. More significant cuts occurred in May (over 6,000 jobs) and June (at least 300 roles). As of June 2024, the company employed 228,000 people—down from 2023, when it eliminated 10,000 positions. The largest layoff in Microsoft’s history remains the 2014 reduction of 18,000 jobs following its acquisition of Nokia’s devices division.
Sources indicate that, similar to the May restructuring, this round aims to streamline management hierarchies, reducing layers between executives and individual contributors. Phil Spencer, CEO of Microsoft Gaming, echoed this strategy in an internal memo: “To sustain Gaming’s growth, we will scale back certain business areas and align with Microsoft’s broader initiative to enhance agility by flattening management structures.”
Despite the layoffs, Microsoft continues to demonstrate strong financial performance. The company reported $26 billion in net income on $70 billion in revenue for the March quarter, surpassing Wall Street expectations. FactSet data reaffirms Microsoft’s position as one of the S&P 500’s most profitable firms. Executives project 14% year-over-year revenue growth for the June quarter, driven by Azure cloud services and productivity software demand.
Microsoft’s stock reached an all-time high of $497.45 on June 26 but dipped slightly by 0.6% following the announcement. The cuts reflect broader trends in the tech sector, with companies like Autodesk, Chegg, and CrowdStrike also downsizing in 2025. Meanwhile, ADP reported an unexpected loss of 33,000 private-sector jobs in June, contrary to economists’ forecasts of a 100,000 increase.
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