Microsoft has announced a major workforce reduction, laying off approximately 6,000 employees, which accounts for 3% of its global workforce.
The layoffs, confirmed on May 13, 2025, mark the company’s largest job cuts in over two years, affecting employees across all levels, teams, and geographies.
The decision comes despite strong financial performance, with Microsoft reporting $25.8 billion in net income for the latest quarter.
However, the company is prioritizing cost-cutting measures as it continues to invest heavily in artificial intelligence (AI) infrastructure.
Reasons Behind the Layoffs
Microsoft’s chief financial officer, Amy Hood, stated that the company is focused on building high-performing teams and increasing agility by reducing managerial layers.
The layoffs are part of a broader restructuring effort, aimed at streamlining operations and optimizing workforce efficiency.
Key factors driving the layoffs include:
- Heavy AI investments, with Microsoft allocating $80 billion toward data centers and AI development.
- Efforts to reduce management layers, ensuring faster decision-making and operational efficiency.
- Industry-wide cost-cutting trends, as Big Tech firms adjust their workforce strategies.
Microsoft Layoffs: Employee Impact and Executive Reactions
The layoffs have affected multiple divisions, including LinkedIn, Xbox, and software engineering teams.
Notices were sent out on Tuesday, with employees expressing shock and disappointment over the sudden job cuts.
Microsoft executives and affected employees took to LinkedIn to share their experiences.
Scott Hanselman, a vice president at Microsoft, described the layoffs as “a day with a lot of tears,” acknowledging the emotional toll on employees.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
