Microsoft has laid off nearly 6,000 employees, accounting for about 3% of its global workforce.
The tech giant confirmed the job cuts on Tuesday, saying the decision is part of a broader plan to reshape how the company is managed and operated.
The layoffs affect employees at all levels and across all departments, with a major focus on reducing the number of management layers.
Workers in Microsoft's home state of Washington were among the hardest hit, where nearly 2,000 employees lost their jobs—most of them from its Redmond headquarters, CNBC said.
"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.
This marks Microsoft's biggest wave of layoffs since early 2023, when the tech giant cut around 10,000 positions.
Earlier this year in January, a smaller round of layoffs took place, but those were based on individual performance. This time, Microsoft confirmed that performance was not a factor.
Yesterday, Microsoft laid off 3% of its global headcount across all teams and geographies , affecting 6000 people
— Sonia Shenoy (@_soniashenoy) May 14, 2025
Company says it is to reduce ‘unnecessary layers of management’
This is Microsoft’s second largest round of layoffs since the elimination of 10,000 roles in 2023… pic.twitter.com/JasLwlGVxx
Microsoft Cuts Jobs Despite Strong $25.8B Quarterly Profit
Despite the layoffs, Microsoft is financially strong. Microsoft recently reported a profit of $25.8 billion for the January to March quarter, surpassing analysts' forecasts on Wall Street. Its share price also hit a new high of $449.26 on Monday.
The latest cuts are part of a larger strategy to improve how the company operates. Amy Hood, Microsoft's chief financial officer, recently said the company wants to build "high-performing teams" by having "fewer managers" and making operations more efficient.
According to AP, the recent job cuts have affected several prominent teams within Microsoft, including those at Xbox and LinkedIn.
Notices began going out Tuesday, and most affected employees will officially leave by July.
"This is a day with a lot of tears," said Scott Hanselman, a Microsoft vice president, in a public post. "These are people with dreams and rent, and I love them and I want them to be OK."
Experts say these changes reflect a shift in how large tech companies are adjusting after years of heavy hiring, especially during the COVID-19 pandemic.
"Big tech companies have trimmed their workforces as they rearrange their strategies," said Daniel Zhao, lead economist at Glassdoor.
Microsoft is also spending heavily on artificial intelligence—around $80 billion this fiscal year alone. However, experts say the layoffs are more about management structure than AI replacing jobs.
"This could be an effort to think more long term," said Cory Stahle, an economist at Indeed. "It's not just about technology—it's about planning for what's next."
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