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Microsoft is laying off approximately 6,000 employees, or nearly 3% of its global workforce, in a strategic move to simplify its structure and improve performance across teams.
The changes will affect roles at all levels and in all geographies, with a particular focus on reducing layers of management.
The company, which employed 228,000 full-time staff as of June last year, said it began notifying affected employees on Tuesday. Around 55% of Microsoft’s workforce is based in the United States.
In a statement confirming the decision, Microsoft said: “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
The restructuring comes as Microsoft seeks to increase agility and sharpen execution following a strong period of financial performance.
Building agility amid growth
The job cuts follow remarks from Microsoft’s chief financial officer Amy Hood, who in April told investors that the business was committed to “building high-performing teams and increasing our agility by reducing layers with fewer managers.”
The company's headcount in March was up 2% compared with the same period the previous year, but had declined slightly from the end of 2023. The latest round of job cuts suggests a continued focus on structural efficiency, despite recent growth.
This is the most significant layoff event at the company since early 2023, when it reduced headcount by 10,000 workers, amounting to almost five per cent of its workforce at the time. A smaller round of performance-based cuts was also announced earlier this year.
The current restructuring effort positions Microsoft alongside several other tech firms seeking to recalibrate staffing levels and team composition in response to shifting post-pandemic business demands.
Strong financials contrast with headcount cut
Microsoft’s layoffs arrive just weeks after it exceeded analyst expectations in its January to March earnings, posting strong sales and profits. The tech company has now beaten Wall Street estimates for four consecutive quarters.
Despite this positive performance, the company is recalibrating its operational model for long-term resilience and efficiency.
The decision to reduce headcount reflects a broader trend among large technology firms to prioritise efficiency, flatten organizational structures, and enhance responsiveness.
