What just happened? It's another bad day to be a tech worker. Microsoft has announced that it is laying off 6,000 employees, around three percent of its entire workforce, globally. It brings the total number of tech industry layoffs in 2025 to almost 60,000 – and there's still more than half the year left.
Microsoft said that is slashing three percent of its workforce across all levels, teams and geographies. The company employed around 228,000 workers as of the end of June, meaning about 6,000 people will be losing their jobs. Of that number, 1,985 layoffs will be tied to Microsoft's Redmond headquarters, including 1,510 in-office.
While the cuts are affecting those at all levels, including at LinkedIn and international offices, the expected focus will be on reducing the number of management positions.
Microsoft layoffs since 2023
| Date (announcement) | Reported head-count cut | Main business areas hit |
|---|---|---|
| 18 Jan 2023 | 10,000 | Windows & devices, Xbox, HoloLens, recruiting & marketing |
| 25 Jan 2024 | 1,900 | Activision Blizzard, Xbox, ZeniMax after the ABK deal closed |
| 3 – 4 Jun 2024 | ≈1,000 (internal est.) | Azure for Operators, HoloLens/mixed-reality, other "moon-shot" teams |
| 12 Sep 2024 | ≈650 | Xbox publishing & game-studio support teams |
| Jan – Feb 2025 | ≈2,000 | Company-wide "low-performer" cull (no severance in many cases) |
| 13 May 2025 | ≈6,000 (Microsoft says "< 3 % of staff") | All geographies; focus on middle-management, LinkedIn |
In April, Microsoft Chief Financial Officer Amy Hood said on an earnings call that the company would be streamlining by "reducing layers with fewer managers." It was reported at the time that some Microsoft organizations were looking to increase their span of control, defined as the number of direct reports or subordinates a manager or supervisor oversees. The company also wanted to increase the number of coders compared to non-coders on projects.
Regarding the latest round of layoffs, a Microsoft spokesperson said, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."
The move comes despite Microsoft beating expectations in its latest quarterly earnings report. The company made $70.1 billion in revenue for the quarter, up 13% from the same period last year, and it continues to invest billions of dollars in AI. The Windows maker has designated $80 billion in capital spending this fiscal year, with most of it aimed at expanding data centers for its artificial intelligence services.
At the start of the year, Microsoft confirmed it was implementing performance-based layoffs, though it said those let go would be replaced with new hires. Soon after those performance cuts were revealed, the company said it was making more job cuts across its business, impacting employees in the gaming, experience & devices, sales, and security divisions. The company also tightened policies for low performers in April and added a voluntary exit plan.
The latest round of cuts will be the largest since Microsoft laid off 10,000 people just over two years ago. Adding those to the 1,900 people let go after the Activision Blizzard deal closed, the Azure layoffs, the game studio cuts, and the others mentioned here brings the total to around 21,550 Microsoft layoffs since the start of 2023.
Microsoft slashes 6,000 positions globally amid AI spending spree
