Microsoft Layoffs 2025: 3% Workforce Cut to Affect Over 6,500 Employees
Microsoft is reportedly preparing to reduce its global workforce by 3%, a move that could impact more than 6,500 employees, according to CNBC. This marks one of the company’s largest workforce reductions since it cut 10,000 jobs in 2023. A Microsoft spokesperson stated the layoffs are part of ongoing organizational changes to position the company for success in a "dynamic marketplace."
Despite reporting strong financial performance in April-with $70.1 billion in revenue (up 13%) and $25.8 billion in net income (up 18%)-the company is proceeding with job cuts across all levels, locations, and teams. Unlike January’s performance-based layoffs, this round is not tied to individual employee performance.
Broader Implications for Big Tech
The latest Microsoft layoffs follow a trend of workforce reductions across major tech firms. Amazon and Meta also conducted significant job cuts earlier this year, reflecting broader industry adjustments. Microsoft’s decision underscores the challenges even financially robust companies face in balancing growth with operational efficiency.
Microsoft’s Financial Performance vs. Workforce Strategy
While Microsoft’s recent earnings exceeded analyst expectations, the company continues to streamline its workforce. This suggests a strategic shift rather than a reaction to financial instability. The layoffs align with CEO Satya Nadella’s emphasis on agility and long-term competitiveness in the evolving tech landscape.
Frequently Asked Questions
How many employees will be affected by the Microsoft layoffs?
Approximately 6,500 employees, or 3% of Microsoft’s global workforce, are expected to be impacted.
Are these layoffs performance-related?
No, unlike January’s cuts, these layoffs are part of broader organizational restructuring.
How does this compare to previous Microsoft layoffs?
This is one of the largest reductions since 2023, when Microsoft cut 10,000 jobs.