Hajra Naz
Microsoft plans to lay off about 9,000 employees. That’s less than 4% of its global workforce. The company says the goal is to simplify operations and cut down on management layers. CNBC first reported the news. It comes at the beginning of Microsoft’s 2026 fiscal year.
A company spokesperson confirmed the layoffs in an email. “We are making changes to help our teams succeed in a fast-changing market,” the spokesperson said.
The cuts will affect many teams, locations, and job levels. This is one of several rounds of layoffs in 2025. Microsoft has already cut less than 1% of staff in January based on performance. In May, it cut over 6,000 jobs. Another 300 employees were laid off in June. As of June 2024, Microsoft had around 228,000 workers. In 2023, the company also cut 10,000 jobs.
Microsoft’s biggest layoff was in 2014, when it let go of 18,000 people after buying Nokia’s phone business.
People familiar with the situation say Microsoft is removing layers of middle managers. This is to make the company more flexible and efficient. Other tech giants like Amazon and Meta are doing the same.
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Phil Spencer, CEO of Microsoft Gaming, addressed employees in a memo on Wednesday, echoing this sentiment:
“To position gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management.”
Even with the job cuts, Microsoft is doing well financially. In its latest report, the company made $25.8 billion in profit. That’s an 18% increase from last year. It also earned $70 billion in revenue.
For the June quarter, Microsoft expects revenue to grow by 14%. This is mainly because of strong sales in its Azure cloud services and Microsoft 365 software.
On June 26, Microsoft’s stock hit a record high of $497.45 per share. It dropped slightly by 0.2% the next day. Still, Microsoft remains one of the top-earning companies in the S&P 500.
Other tech companies are also laying off employees. Autodesk, Chegg, and CrowdStrike all made layoffs in 2025.
In the wider economy, payroll company ADP said the U.S. private sector lost 33,000 jobs in June. Experts had predicted a gain of 100,000 jobs.
Microsoft’s latest moves show it is focusing on long-term planning. The company wants to stay efficient while continuing to grow.
