Microsoft plans to lay off 6,000 employees as part of a larger organizational restructuring, representing nearly 3 percent of its global workforce, according to The Guardian.
The company, which employed 228,000 full-time workers as of June 2024, did not provide specific details on the positions being cut.
However, the layoffs are expected to affect employees at all levels and across various locations, with an emphasis on reducing management ranks. Notices were sent to affected employees on Tuesday.
“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” the company said.
The move followed a smaller round of performance-based layoffs earlier this year, but the 6,000 job losses represent the largest such reduction since Microsoft laid off 10,000 workers, or about 5 per cent of its workforce, in early 2023.
Despite the job cuts, Microsoft has remained financially strong, reporting robust sales and profits in its most recent quarter.
The company’s chief financial officer, Amy Hood, noted during an April earnings call, “We are focused on building high-performing teams and increasing our agility by reducing layers with fewer managers.”
Hood also mentioned that, as of March 2025, Microsoft’s headcount was 2 per cent higher compared to the previous year, although slightly lower than at the end of 2024.
The layoffs come as Microsoft continues to adjust to the changing tech landscape, even as it capitalizes on the growing demand for artificial intelligence.
The company’s recent strong financial performance has provided some relief amid challenges facing the broader tech industry.