The company announced on Tuesday that it is letting go of 6,000 workers worldwide, which is about 3.0% of its total workforce. The workforce reduction spans departments, job levels, and regions. The Microsoft layoffs 2025 reflect a broader restructuring strategy to better align with shifting market dynamics.
According to the company, this move is part of a broader restructuring strategy to better align with shifting market dynamics.
A representative from Microsoft noted, “We are reorganizing to better equip the business for long-term agility and market competitiveness.”
Biggest Staff Reduction Since Previous Year
The number of Microsoft employees worldwide was around 228,000 as of June of last year. The current round of layoffs marks the most significant since the 10,000 jobs that were eliminated in 2023.
In this wave, 1,985 positions will be impacted in Washington State alone, with 1,510 roles based at the company’s main campus in Redmond. Microsoft has stated that the layoffs are not due to employee performance.
Streamlining Leadership Structure
A key part of this transition is aimed at cutting down on excessive managerial tiers, echoing structural changes recently implemented by other major tech players, such as Amazon.
Financial Performance Remains Strong
Despite the staff reductions, Microsoft reported robust financial health, including a $25.8 billion net profit in its latest quarterly earnings. The company also issued an optimistic financial outlook during its April update.
CEO Satya Nadella has emphasized refining sales processes, especially in response to slower growth in Azure’s non-AI cloud offerings.
“During platform transitions, it’s critical to focus on strategic advancements,” Nadella stated earlier in the year.
Stock Hits Peak for 2025
Microsoft shares finished trading at $449.26 on Monday — the highest price recorded so far this year. The stock’s previous record close was $467.56 in July 2024.
