Microsoft To Lay Off 3% Of Workforce As Tech Industry Shifts Focus

Microsoft is laying off approximately 6,000 employees, around 3% of its global workforce, as CNBC reports, marking the latest round of job cuts as the company continues to realign its business priorities.

The move will affect workers across various teams and regions, though the company did not disclose specific departments or locations. A Microsoft spokesperson told CNBC that the layoffs are part of organizational and workforce adjustments “to reduce layers of management” and not related to job performance. The spokesperson further stated, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”

Microsoft, which employed 228,000 people worldwide as of June last year, has conducted several rounds of layoffs in recent years. In 2023, the company cut 10,000 positions, according to CNBC.

In 2024, Microsoft also laid off nearly 2,000 employees from its gaming division just months after a $69 million gaming acquisition, as AFROTECH™ previously reported, which the company stated was a way to “reduce areas of overlap.”

In addition, earlier this year, Microsoft eliminated a small number of roles that were said to have been tied to employee performance, as CNBC notes.

Microsoft isn’t alone in making cuts. As seen recently, Google, Amazon, CrowdStrike, and Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, have announced layoffs in an effort to reevaluate operations and shift resources.

Widespread job losses may indicate a strategy shift due to the increasing demand in industries like artificial intelligence (AI), cybersecurity, and fintech.

According to TechCrunch, Microsoft’s announcement of layoffs comes only days before Microsoft Build 2025, where the company is anticipated to introduce new AI-powered capabilities incorporated into products like Windows and Microsoft 365, further demonstrating its dedication to next-generation technology.

Per CNBC, Microsoft CEO Satya Nadella had this to say: “At a time of platform shifts, you kind of want to make sure you lean into even the new design wins, and you just don’t keep doing the stuff that you did in the previous generation.”