Up to 7,000 Microsoft workers could be made redundant in the biggest drop in two years

Date:
Wed, 14 May 2025 13:29:00 +0000

Description:
Around 7,000 Microsoft workers could be losing their jobs the biggest reduction since January 2023 when 10,000 workers left.

FULL STORY

Microsoft has announced significant layoffs, impacting an estimated 6,000 to 7,000 workers globally, or 3% of its current headcount.

It's believed that the job cuts will affect various departments and regions, including LinkedIn, Xbox, and software engineering teams, with nearly 2,000 roles set to be eliminated from Washington State alone (via CNBC ).

As part of the significant shakeup, Microsoft is primarily targeting middle management roles within an initiative to flatten organisational structures a trend that we're beginning to see adopted by rival companies as well.

Microsoft streamlines operations with 3% headcount reduction

"We continue to implement organizational changes necessary to best position
the company for success in a dynamic marketplace," a company spokesperson added.

Like the rest of the tech sector, redundancies continue to plague Microsoft, which has made smaller-scale announcements already this year. In 2024, it
made a series of mid-sized announcements, including 650, 1,000 and 1,900 workers in three separate instances (via layoffs.fyi ), but nothing has quite met the scale of the company's biggest post-pandemic round of layoffs when,
in January 2023, 10,000 workers (5% of the workforce) were sent packing.

Despite strong financial performance, with a revenue of $70.1 billion in the company's most recent quarter, the landscape is shifting. Microsoft must prepare to prioritize investments in AI and cloud computing , which means
other departments are likely to suffer.

CFO Amy Hood also noted that the headcount was already 2% higher than the
year previously during the Q3 2025 earnings call. Alluding to the continued growth of AI, Nadella added to the April call: "We processed over 100
trillion tokens this quarter, up 5X year-over-year including a record 50 trillion tokens last month alone."

TechRadar Pro has asked Microsoft to share more about its decision, but we
did not receive an immediate response.

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Link to news story: https://www.techradar.com/pro/up-to-7-000-microsoft-workers-could-be-made-redu ndant-in-the-biggest-drop-in-two-years

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