Microsoft Cuts 9,000 Jobs in Major Restructuring Push to Stay Agile
Microsoft announced Wednesday that it will lay off around 9,000 employees, impacting fewer than 4% of its global workforce. The reductions will span across various teams, locations, and experience levels, according to a source familiar with the matter. The move aligns with the start of Microsoft’s 2026 fiscal year, a time when the tech giant traditionally rolls out organizational shifts.
A spokesperson explained that these changes are meant to help the company adapt to a rapidly evolving market and ensure long-term success. This latest round follows several workforce reductions earlier in 2025, including cuts in January, May, and June — with over 6,000 positions eliminated in May alone.
As of June 2024, Microsoft employed about 228,000 people worldwide. The company’s largest layoff to date occurred in 2014, when it let go of 18,000 employees after acquiring Nokia’s device division.
Phil Spencer, head of Microsoft’s gaming division, emphasized in a memo that restructuring is aimed at streamlining management layers and focusing on strategic growth areas to position the business for future success.
Despite the layoffs, Microsoft remains financially strong, posting nearly $26 billion in profit on $70 billion in revenue for the March quarter — beating Wall Street expectations. The company projects approximately 14% revenue growth for the June quarter, driven by demand for Azure cloud services and business software.
Microsoft shares recently hit a record high of $497.45 but closed slightly lower on Wednesday. Meanwhile, other tech companies like Autodesk, Chegg, and CrowdStrike have also trimmed their workforces this year.
On the same day, ADP reported that the U.S. private sector saw a loss of 33,000 jobs in June, defying economist forecasts of a 100,000 job increase.
