Microsoft has announced a significant round of layoffs affecting approximately 6,000 employees worldwide—nearly 3% of its global workforce—as part of a broader restructuring strategy aimed at increasing agility and streamlining operations.
According to The Guardian, the tech giant issued notices to affected employees on Tuesday. While specific roles and departments were not disclosed, the company confirmed that job reductions would span various locations and job levels, with a strong focus on cutting layers of management.
The move marks Microsoft’s largest workforce reduction since early 2023, when it laid off 10,000 employees, accounting for about 5% of its headcount at the time. As of June 2024, Microsoft employed 228,000 full-time staff globally.
“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft said in a statement.
The company had previously undertaken a smaller round of performance-based layoffs earlier this year, but the latest decision signals a more strategic effort to reshape internal structures. During an April 2025 earnings call, Chief Financial Officer Amy Hood emphasized the importance of “high-performing teams” and noted ongoing efforts to “reduce layers with fewer managers.”
Despite the layoffs, Microsoft’s financial position remains strong. The company reported robust sales and profits in its most recent quarterly results, buoyed by continued demand for its cloud services and artificial intelligence solutions. Hood also noted that, as of March 2025, Microsoft’s headcount was 2% higher than the same period in 2024—though it had dipped slightly from end-of-year totals.
The restructuring highlights how even dominant players in the tech sector must continuously adapt to changing technologies and market conditions.
