Microsoft Announces Another Round of Layoffs, Affecting Around 9,000 Employees

Microsoft, one of the major players in global stock markets, is undergoing another wave of job cuts. According to reports from Bloomberg and Reuters, the tech giant will lay off approximately 9,000 employees, which is about 4% of its global workforce, which totals 228,000.

A company spokesperson confirmed that the layoffs will impact all teams, regions, and job functions. The decision is part of a broader initiative to streamline operations and reduce management layers.

“We continue to make organizational adjustments to better position the company and our teams for long-term success in a constantly evolving market,” the spokesperson stated.

Although the cuts are widespread, Bloomberg previously noted that the reduction would primarily affect sales and marketing departments, as well as divisions like Xbox.

This announcement follows a prior round of layoffs in May, when Microsoft let go of 6,000 employees, mainly from its product and engineering divisions.

As of its 2024 fiscal year-end in June, Microsoft employed 228,000 full-time workers—126,000 in the U.S. and 102,000 internationally. By department, 86,000 were in operations (including product support, consulting, data centers, and manufacturing), 81,000 in research and development, 45,000 in sales and marketing, and 16,000 in general administration.

In its most recent quarterly earnings report, covering January to March 2025, which corresponds to Microsoft’s third fiscal quarter, the company posted $70.07 billion in revenue, a 13.26% year-over-year increase. Net income rose by 17.7%, reaching $25.82 billion.

Looking at the broader fiscal year 2025, with only one quarter remaining, Microsoft has generated $205.28 billion in revenue, marking a 13.79% increase compared to the same period last year. Profits during the first nine months climbed 12.85% year-over-year, totaling $74.60 billion.

Despite the significant workforce reduction, investor reaction has been muted. Microsoft’s stock dipped just 0.2%, while the Nasdaq index closed up 0.94% for the day.