What simply occurred? It is one other unhealthy day to be a tech employee. Microsoft has introduced that it’s shedding 6,000 staff, round three p.c of its total workforce, globally. It brings the overall variety of tech trade layoffs in 2025 to virtually 60,000 – and there is nonetheless greater than half the yr left.
Microsoft mentioned that’s slashing three p.c of its workforce throughout all ranges, groups and geographies. The corporate employed round 228,000 staff as of the tip of June, which means about 6,000 folks will probably be dropping their jobs. Of that quantity, 1,985 layoffs will probably be tied to Microsoft’s Redmond headquarters, together with 1,510 in-office.
Whereas the cuts are affecting these in any respect ranges, together with at LinkedIn and worldwide places of work, the anticipated focus will probably be on decreasing the variety of administration positions.
Microsoft layoffs since 2023
| Date (announcement) | Reported head-count lower | Primary enterprise areas hit |
|---|---|---|
| 18 Jan 2023 | 10,000 | Home windows & gadgets, Xbox, HoloLens, recruiting & advertising and marketing |
| 25 Jan 2024 | 1,900 | Activision Blizzard, Xbox, ZeniMax after the ABK deal closed |
| 3 – 4 Jun 2024 | ≈1,000 (inside est.) | Azure for Operators, HoloLens/mixed-reality, different “moon-shot” groups |
| 12 Sep 2024 | ≈650 | Xbox publishing & game-studio help groups |
| Jan – Feb 2025 | ≈2,000 | Firm-wide “low-performer” cull (no severance in lots of instances) |
| 13 Might 2025 | ≈6,000 (Microsoft says “< 3 % of employees”) | All geographies; give attention to middle-management, LinkedIn |
In April, Microsoft Chief Monetary Officer Amy Hood mentioned on an earnings name that the corporate could be streamlining by “decreasing layers with fewer managers.” It was reported on the time that some Microsoft organizations had been trying to improve their span of management, outlined because the variety of direct stories or subordinates a supervisor or supervisor oversees. The corporate additionally needed to extend the variety of coders in comparison with non-coders on initiatives.
Relating to the newest spherical of layoffs, a Microsoft spokesperson mentioned, “We proceed to implement organizational modifications essential to greatest place the corporate for achievement in a dynamic market.”
The transfer comes regardless of Microsoft beating expectations in its newest quarterly earnings report. The corporate made $70.1 billion in income for the quarter, up 13% from the identical interval final yr, and it continues to speculate billions of {dollars} in AI. The Home windows maker has designated $80 billion in capital spending this fiscal yr, with most of it geared toward increasing information facilities for its synthetic intelligence companies.
At the beginning of the yr, Microsoft confirmed it was implementing performance-based layoffs, although it mentioned these let go would get replaced with new hires. Quickly after these efficiency cuts had been revealed, the corporate mentioned it was making extra job cuts throughout its enterprise, impacting staff within the gaming, expertise & gadgets, gross sales, and safety divisions. The corporate additionally tightened insurance policies for low performers in April and added a voluntary exit plan.
The most recent spherical of cuts would be the largest since Microsoft laid off 10,000 folks simply over two years in the past. Including these to the 1,900 folks let go after the Activision Blizzard deal closed, the Azure layoffs, the sport studio cuts, and the others talked about right here brings the overall to round 21,550 Microsoft layoffs for the reason that begin of 2023.
