Microsoft Layoffs: 9,000 Employees Let Go In Biggest Job Cut Since 2023

Microsoft is group to laic disconnected complete 9,000 employees, representing astir 4% of its world workforce, arsenic portion of ongoing organisational changes aimed astatine aligning nan institution pinch shifting strategical goals. The announcement, confirmed connected 2 July 2025, marks nan exertion giant’s largest information of layoffs since 2023.

With much than 228,000 labor worldwide, Microsoft has not disclosed which circumstantial regions aliases departments will beryllium astir affected. However, nan layoffs are expected to effect professionals crossed various teams and levels of experience.

A Microsoft spokesperson, speaking to AFP and CNBC, said, “We proceed to instrumentality organisational changes basal to champion position nan institution and teams for occurrence successful a move marketplace.” The institution besides noted that specified adjustments are portion of its regular workforce evaluations, adding, “Even successful nan champion of times, we person regularly adjusted our workforce to meet nan strategical demands of nan business.”

This latest information of cuts follows a bid of workforce reductions earlier successful nan year. In May 2025, Microsoft trim astir 6,000 jobs, followed by an further 300 successful June. Back successful January, nan institution announced a performance-based trim of 1% of its staff. In 2023, it laid disconnected 10,000 employees. The existent improvement is nan company’s second-largest wide layoff aft eliminating astir 18,000 jobs successful 2014.

While Microsoft has not officially stated nan reasons down nan layoffs, reports propose nan accelerated maturation of AI-driven devices for illustration coding assistants could beryllium influencing soul restructuring. The institution has been progressively focusing connected integrating artificial intelligence into its products and workflows. Earlier this year, Microsoft CEO Satya Nadella moreover mentioned really almost "20-30% of each nan code" was written by AI. A caller soul memo that was made public also noted really definite departments astatine Microsoft person now made AI usage mandatory, and tied it to nan capacity reviews of employees. 

According to Microsoft, these technologies are intended to “empower labor to walk much clip focusing connected meaningful work.”

The announcement comes unusually early successful Microsoft’s fiscal year, which typically sees structural changes astatine its close. The timing and standard of nan layoffs bespeak broader manufacture trends arsenic tech companies proceed to streamline operations while accelerating investments successful AI.

Published on: Jul 2, 2025 10:16 PM IST