Microsoft to lay off around 9,000 workers in its largest cuts since 2023

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"Microsoft Announces Layoff of 9,000 Employees Amid Organizational Restructuring"

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TruthLens AI Summary

Microsoft has announced it will lay off approximately 9,000 employees, marking the largest workforce reduction since it cut 10,000 jobs in 2023. This decision represents less than 4% of the company's total workforce, which was reported to be 228,000 as of July 2024. The layoffs are part of a broader trend within the tech industry, where many companies, including Meta and Amazon, are also reducing staff amid economic pressures and a shift towards greater efficiency through artificial intelligence. According to a Microsoft spokesperson, the company is undergoing organizational changes aimed at enhancing productivity and streamlining operations, which includes reducing managerial layers to adapt to a rapidly evolving marketplace. The announcement did not specify which divisions would be impacted, although reports indicate that the Xbox division may be affected, as noted by Xbox leader Phil Spencer in an internal communication.

In recent months, Microsoft has been investing significantly in AI technologies, with CEO Satya Nadella stating that AI is responsible for generating 20% to 30% of the company's code. While it remains unclear if AI directly influenced the decision for the layoffs, the company is focusing on leveraging these technologies to improve efficiency across its workforce. This layoff announcement follows a previous reduction in May, when Microsoft laid off about 3% of its employees, totaling roughly 7,000 jobs. Despite these cuts, Microsoft reported an 18% increase in quarterly profits, reaching $25.8 billion, driven largely by its cloud services and AI offerings. As the company prepares to release its fiscal fourth-quarter earnings, it continues to navigate challenges in the tech sector while adapting to new technological advancements and market demands.

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Source URL: https://edition.cnn.com/2025/07/02/tech/microsoft-layoffs-9000-employees

Microsoft is laying off thousands of employees, its third round of cuts in recent months, the company confirmed on Wednesday.

The staff reduction will affect less than 4% of the company’s total workforce, or around 9,000 workers, according to a company spokesperson. It marks the tech giant’s largest layoffs since it cut 10,000 employees in 2023 and comes amid workforce cuts elsewhere in the tech industry.

Microsoft’s stock was unchanged following the announcement.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement, adding that the company is reducing managerial layers and making employees more productive with new technologies.

The staff reduction also comes as tech companies, including Microsoft, are using artificial intelligence to make their workforce more efficient. Microsoft CEO Satya Nadellasaid earlier this yearthat 20% to 30% of the company’s code was being generated by AI, and the company is pouring billions into AI infrastructure investments.

It’s unclear whether AI directly contributed to Wednesday’s cuts and which Microsoft divisions will be affected.The Verge reportedthat Xbox leader Phil Spencer sent an internal note saying that his staff would be affected. Bloomberg also previouslyreportedthat the planned July layoffs would target the sales and Xbox teams.

Wednesday’s cuts come after Microsoftlaid off 3% of its staff, roughly 7,000 employees, in May.

As of July 2024, the last time Microsoft formally reported its total headcount, the company employed 228,000 workers.

Other tech companies have also conducted layoffs this year, includingMetaandBumble. Amazon CEO Andy Jassy alsowarned his stafflast month that AI would eventually help the company reduce headcount.

Microsoftsaid in Aprilthat its quarterly profits had increased 18% to $25.8 billion during the three months ended March 31, on the back of strong performance for its cloud business and AI services. The company is expected to release earnings for its fiscal fourth quarter later this month.

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Source: CNN