Microsoft announced on Wednesday that it will lay off approximately 9,000 employees, affecting less than 4% of its global workforce.
Gatekeepers News reports that the move is part of the company’s ongoing efforts to reorganise and position itself for success in a dynamic marketplace.
According to a Microsoft spokesperson, “We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace.” The layoffs will impact various teams, geographies, and levels of experience.
This is not the first round of layoffs for Microsoft this year. In January, the company cut less than 1% of its headcount based on performance. Additional layoffs were announced in May and June, with over 6,000 and at least 300 jobs eliminated, respectively.
Phil Spencer, Microsoft’s CEO of gaming, wrote in a memo to employees that the company is looking to reduce the number of layers of managers to increase agility and effectiveness.
“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,” Spencer said.
The layoffs come as Microsoft reported strong financial results for the March quarter, with net income of nearly $26 billion on $70 billion in revenue. The company expects continued growth in its Azure cloud services and corporate productivity software subscriptions.
Other tech companies, including Autodesk, Chegg, and CrowdStrike, have also announced layoffs in 2025.
The news follows a report that the U.S. private sector lost 33,000 jobs in June, contrary to economists’ predictions of a 100,000-job increase.
