May 14 2025 – Microsoft is reportedly set to reduce its workforce by approximately 3%, a strategic move aimed at cost containment while simultaneously allocating billions of dollars towards its ambitious artificial intelligence initiatives, as covered by CNBC today.
The job cuts are expected to span across all levels and geographical regions within the tech behemoth. A spokesperson from Microsoft was quoted in the report, stating, “We will persist in making the essential organizational adjustments necessary for the company’s triumph in a dynamic market landscape.”
It was noted that Microsoft commenced issuing layoff notices to thousands of employees on Tuesday morning. Less than 3% of Microsoft’s global workforce is anticipated to be affected by this latest round of downsizing, translating to roughly 6,000 individuals worldwide. This estimation is grounded in Microsoft’s most recent official employee headcount as of June 2024, which already accounted for the performance-based layoffs conducted by the company earlier this year.
In contrast to the performance-driven layoffs earlier this year, the current reduction is more expansive, impacting various levels, regions, and teams across the company, including LinkedIn.
During Microsoft’s earnings call on April 30, Amy Hood, the Chief Financial Officer of Microsoft, emphasized the company’s commitment to “building high-performing teams and enhancing agility by streamlining management layers and reducing managerial positions.”
