Latest Microsoft Layoffs (2025): Letting Go of 6,000 Employees
Microsoft trimming numerous workforce positions
Grab a Brew, Mate! In a surprising move, tech titan Microsoft has sliced its workforce by around 3%, axing approximately 6,000 jobs across levels and regions.
Deep Dive into the Downsizing This round of layoffs, as confirmed by a Microsoft spokesperson to CNBC, is part of a broader strategy to streamline operations and boost competitiveness in an ever-evolving market.
The Executive's Takeaway According to recent reports, the company aims to cut back on hierarchical layers and emphasize investment in technical roles, potentially flattening its organizational structure.
Past Performance Microsoft had made job cuts earlier in 2023, trimming about 10,000 jobs. The tech sector experienced significant workforce expansion during the COVID-19 pandemic.
AI Investment Surges As technology continues to evolve, Microsoft plans to plough a whopping $80 billion into AI-based data centers in the coming fiscal year.
Recent Quarterly Results The tech giant reported stellar Q2 results in late April, posting a quarterly profit of around $26 billion, surpassing analysts' expectations.
Worth Noting:- The 3% job cuts affected roles across engineering, product, marketing, and AI strategy.- The layoffs in 2025 might have been launched to finance Microsoft's AI push and restructuring initiatives.- There's no specific information regarding job cuts in Q2 2024, but Microsoft did make smaller cuts in its Xbox gaming division at the end of 2024.
Sources: ntv.de, lme/dpa, The Verge, Bloomberg
In light of the latest Microsoft layoffs, the company might reassess its employment policy to streamline operations and prioritize investment in technical roles, particularly in AI, which aligns with their planned $80 billion investment in AI-based data centers. Concurrently, the community policy may need to address the financial implications of such efforts, considering the recent layoffs of approximately 6,000 employees served to fund these restructuring initiatives.
