Microsoft to Lay Off Nearly 9,000 Employees in Largest Job Cut Since 2023
Microsoft has confirmed that it is laying off thousands of employees, marking its largest round of job cuts since 2023.
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Microsoft has confirmed that it is laying off thousands of employees, marking its largest round of job cuts since 2023. This latest move represents the third wave of layoffs in recent months by the tech giant.
According to a company spokesperson, the cuts will impact less than 4% of Microsoft's global workforce—approximately 9,000 employees. The last major layoff came in 2023, when the company eliminated 10,000 jobs. This latest decision comes amid a broader wave of downsizing across the tech sector.
The announcement did not impact Microsoft’s stock price, which remained stable after the news.
In a statement, a Microsoft spokesperson said, “We are continuing to make organizational changes to position the company and our teams for success in a dynamic market.” The spokesperson added that the company is streamlining management layers and increasing productivity through new technologies.
The layoffs come at a time when Microsoft and other tech firms are increasingly leveraging artificial intelligence (AI) to boost employee efficiency. CEO Satya Nadella stated earlier this year that AI is now responsible for generating 20% to 30% of the company’s code, and that Microsoft is investing billions of dollars into AI infrastructure.
It remains unclear whether AI directly influenced this round of layoffs or which specific departments are being affected. However, according to The Verge, Xbox chief Phil Spencer sent an internal memo acknowledging that members of his team are impacted. Bloomberg had earlier reported that Microsoft planned to target layoffs in its sales and Xbox divisions this July.
This announcement follows another significant layoff in May, when Microsoft cut around 7,000 jobs—roughly 3% of its workforce.
As of July 2024, Microsoft's total workforce stood at approximately 228,000 employees.
Other major tech companies such as Meta and Bumble have also announced layoffs this year. Amazon CEO Andy Jassy recently told staff that AI will eventually help the company reduce its headcount.
Despite the job cuts, Microsoft continues to perform well financially. In April, the company reported an 18% increase in quarterly profit, reaching $25.8 billion, driven by strong growth in its cloud and AI services. Microsoft is expected to release its fourth-quarter financial results later this month.
