Microsoft to Cut 6,000 Jobs Worldwide to Reduce Costs and Management Layers

• May 13, 2025

Microsoft has announced plans to lay off around 6,000 employees, roughly 3% of its global workforce, as part of a broader effort to cut costs and streamline operations. The company confirmed that the job cuts will affect all levels and regions, with a particular focus on reducing management layers. Layoff notices were sent out on Tuesday.

The tech giant, based in Redmond, Washington, had about 228,000 employees worldwide as of June 2024. While Microsoft did not specify the exact number of affected positions, the Associated Press reported that approximately 6,000 workers are expected to lose their jobs.

Microsoft Chief Financial Officer Amy Hood previously hinted at these cuts during an earnings call in April. She emphasized the company's goal of simplifying its structure by "reducing layers with fewer managers." Hood also mentioned that as of March, Microsoft’s headcount was 2% higher than the previous year but had slightly decreased compared to the end of 2024.

In a statement, Microsoft explained that the decision was necessary to adapt to a rapidly changing market. "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," the company said. It added that efforts would be made to minimize redundancy by streamlining internal processes, procedures, and roles.

This round of layoffs follows a larger workforce reduction in 2023, when Microsoft cut about 11,000 jobs globally. Despite these job cuts, the company has maintained strong financial performance. In its latest quarterly earnings report for the period ending March 31, 2025, Microsoft reported revenue of $70.1 billion, marking a 13% increase from the same quarter in 2024.

The job cuts reflect a broader trend in the tech industry, where many companies are focusing on efficiency and cost control after years of rapid expansion. For Microsoft, reducing management layers and eliminating redundant roles is part of a strategic move to stay competitive and agile in an evolving business landscape.

While the layoffs are significant, Microsoft remains a dominant player in the tech sector, continuing to post solid profits and growth despite these organizational changes.