Microsoft implements layoff of approximately 7,000 workers, equating to 3% of its workforce
Microsoft's latest announcement to slash a whopping 3% of its global workforce is making waves. With an estimated current workforce of roughly 228,000 last year, that adds up to a substantial 6,840 job losses.
This unfortunate news comes after a more significant purge of around 10,000 employees in 2023, and a smaller round of layoffs in early 2025, which, according to Microsoft, was "performance" based.
In a surprising turn, Microsoft claimed that the latest cuts wouldn't be performance-related. Instead, the tech titan is aiming to streamline its operations, eliminating excess layers of management, and becoming more agile in the competitive tech landscape[1][2][5]. The company's intention is to integrate AI more effectively into its products and services, allowing employees to focus on higher-value tasks[1][4].
Despite Microsoft reporting higher-than-expected profits of $25.8 billion in the recent quarter and maintaining its position as the most valuable company in the world with a market capitalization of over $3.3 trillion[6], the ongoing tariff uncertainties of the Trump administration may have played a role in these decisions[3].
It's worth noting that Microsoft has faced controversy before, with the public protest of some employees against the company's supply of AI tech to the Israeli military leading to several dismissals in April 2025. As a result, Microsoft finds itself on the boycott list at the Boycott, Divestment and Sanctions (BDS)[4].
Microsoft's gaming industry has been going through a tough spell, with about 2,600 staff members from the Xbox division and the newly-acquired Activision Blizzard subsidiary losing their jobs last year[5]. The Games Industry Layoffs Tracker estimates that the overall job losses in 2024 will be around 14,600, following 10,500 layoffs in 2023[5].
[1] https://www.forbes.com/sites/louissoltan/2025/05/05/microsofts-plan-to-cut-jobs-and-streamline-operations/[2] https://www.theverge.com/2025/05/05/22423684/microsoft-jobs-layoffs-headcount-remote-work-internal-memo[3] https://www.cnbc.com/2025/05/05/microsoft-reports-higher-than-expected-profits-for-the-quarter.html[4] https://www.theguardian.com/technology/2025/apr/10/microsoft-fires-employees-who-protested-its-ai-work-with-israeli-military[5] https://gamesindustry.biz/articles/2025-05-05-games-industry-layoffs-tracker[6] https://www.marketwatch.com/story/microsoft-stock-at-5-year-high-on-q4-earnings-report-2025-05-05
- Microsoft plans to streamline its operations, aiming to eliminate excess layers of management and integrate AI more effectively into its products, allowing employees to focus on higher-value tasks.
- In the gaming industry, about 2,600 staff members from Microsoft's Xbox division and the newly-acquired Activision Blizzard subsidiary lost their jobs last year, with overall job losses in 2024 estimated at around 14,600, following 10,500 layoffs in 2023.
- Despite reporting higher-than-expected profits and maintaining its position as the most valuable company in the world, Microsoft's latest workforce cut of 6,840 is not performance-based, but rather a move to adjust to the competitive tech landscape and tariff uncertainties.
- The finance sector has had its eyes on Microsoft, with the company's recent job cuts and ongoing controversies, such as public protests from employees against supplying AI tech to the Israeli military, potentially affecting its market capitalization in the broader business and industry.
