Microsoft is set to reduce its workforce by 6,000 employees, roughly 3% of its global staff, as part of a strategic restructuring initiative.
The company, which employed 228,000 full-time workers as of June 2024, has not disclosed specific details about which roles will be affected.
The layoffs are anticipated to impact employees across various levels and locations, with a particular focus on streamlining management positions.
Affected employees were notified on Tuesday.
In a statement, Microsoft explained that the workforce reductions are part of a broader effort to restructure the company to better compete in an ever-changing market.
“We are continuing to make necessary organizational changes to position the company for success in a dynamic environment,” the company stated.
This announcement follows a smaller round of performance-based layoffs earlier this year. However, the 6,000 job cuts mark the largest reduction since Microsoft let go of 10,000 employees, or 5% of its workforce, in early 2023.
Despite the layoffs, Microsoft remains in a strong financial position, posting robust sales and profits in its latest quarterly results. During an April earnings call, Chief Financial Officer Amy Hood emphasized the company’s focus on building high-performing teams and enhancing agility by reducing management layers.
Hood also pointed out that, as of March 2025, Microsoft’s overall headcount was 2% higher than the previous year, although it showed a slight decrease from the end of 2024.
These job cuts come as Microsoft continues to adapt to the evolving tech landscape, particularly in response to the increasing demand for artificial intelligence, while the company continues to navigate challenges facing the broader tech sector.