Microsoft is cutting approximately 6,000 jobs — about 3% of its global workforce — in a broad round of layoffs that spans all levels, teams, and regions. The move comes despite the company’s strong financial performance in its most recent quarter, including $25.8 billion in net income and a positive forecast reported in April.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement to CNBC.
As of the end of June, Microsoft had 228,000 employees globally. The Washington State Employment Security Department reported that 1,985 of the affected positions were tied to the company’s Redmond, Washington headquarters — 1,510 of them in-office roles.
This is likely Microsoft’s largest layoff since January 2023, when it announced plans to eliminate 10,000 jobs. Earlier this year, Microsoft implemented a smaller, performance-based round of layoffs. However, the company clarified that the current job cuts are not related to employee performance.
According to the spokesperson, one of the goals of this restructuring is to reduce layers of management. Microsoft is not alone in targeting internal organizational efficiency; Amazon similarly cited “unnecessary layers” when announcing staff reductions earlier this year.
The layoffs come amid broader shifts in the tech industry. Last week, cybersecurity firm CrowdStrike announced it would lay off 5% of its workforce.
In January, CEO Satya Nadella highlighted plans to tweak Microsoft’s sales strategies following slower-than-expected growth in its Azure cloud revenue, excluding artificial intelligence. He emphasized the importance of adapting during platform transitions: “How do you really tweak the incentives, go-to-market?” Nadella said. “At a time of platform shifts, you kind of want to make sure you lean into even the new design wins, and you just don’t keep doing the stuff that you did in the previous generation.”
Despite the layoffs, Microsoft’s stock remains strong. On Monday, shares closed at $449.26 — the highest so far this year. The company’s all-time high close was $467.56, set in July 2023.
