Kathrine Frich
In January, Microsoft also trimmed its workforce slightly due to performance issues.
In January, Microsoft also trimmed its workforce slightly due to performance issues.
Microsoft Lays Off 9,000 Employees
Microsoft is letting go of around 9,000 staff, nearly 4% of its global workforce, as it reshapes its operations to remain competitive in a shifting tech landscape.
The layoffs affect teams across departments, job levels, and regions, signalling a major internal overhaul.
Wave of Cuts Comes After Months of Job Reductions
This move follows earlier rounds of layoffs in 2024 and 2025, including over 6,000 in May and 300 in June.
In January, Microsoft also trimmed its workforce slightly due to performance issues. The company has now made significant reductions three years in a row.
Management Layers Targeted for Streamlining
One key goal of the restructuring is to reduce the number of management levels between frontline employees and executives.
Microsoft believes a flatter structure will increase operational agility and speed up decision-making, crucial for staying relevant in today’s fast-evolving tech industry.
Gaming Division Among Those Affected
Phil Spencer, head of Microsoft’s gaming arm, confirmed that parts of the division will see closures or reduced operations.
The shake-up is intended to refocus on long-term strategic growth and simplify leadership structures in line with Microsoft’s broader goals.
Strong Financial Results Contrast with Job Cuts
Despite the layoffs, Microsoft remains financially robust.
The company posted nearly $26 billion in profit and $70 billion in revenue in its last quarter, beating Wall Street expectations.
Yet leadership says restructuring is needed to stay lean and future-proof.
Microsoft Stock Hits Record Before Slight Dip
On June 26, Microsoft stock reached an all-time high of $497.45 per share.
However, news of the job cuts led to a slight dip of 0.6% at market open the following day, even as the broader S&P 500 remained stable.
Tech Industry Faces Broader Downsizing Trend
Microsoft isn’t alone, other major tech companies like Autodesk, Chegg, and CrowdStrike have also announced layoffs this year.
The trend reflects ongoing adjustments to post-pandemic demand, inflationary pressures, and shifts in investor expectations for profitability.
