Microsoft layoffs: 9,000 employees let go in biggest job cut since 2023
Microsoft is set to lay off over 9,000 employees, representing approximately 4% of its global workforce, as part of ongoing organisational changes aimed at aligning the company with shifting strategic goals. The announcement, confirmed on 2 July 2025, marks the technology giant’s largest round of layoffs since 2023.
With more than 228,000 employees worldwide, Microsoft has not disclosed which specific regions or departments will be most affected. However, the layoffs are expected to impact professionals across various teams and levels of experience.
A Microsoft spokesperson, speaking to AFP and CNBC, said, “We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace.” The company also noted that such adjustments are part of its regular workforce evaluations, adding, “Even in the best of times, we have regularly adjusted our workforce to meet the strategic demands of the business.”
This latest round of cuts follows a series of workforce reductions earlier in the year. In May 2025, Microsoft cut around 6,000 jobs, followed by an additional 300 in June. Back in January, the company announced a performance-based cut of 1% of its staff. In 2023, it laid off 10,000 employees. The current development is the company’s second-largest mass layoff after eliminating nearly 18,000 jobs in 2014.
While Microsoft has not officially stated the reasons behind the layoffs, reports suggest the rapid growth of AI-driven tools like coding assistants could be influencing internal restructuring. The company has been increasingly focusing on integrating artificial intelligence into its products and workflows. Earlier this year, Microsoft CEO Satya Nadella even mentioned how almost "20-30% of all the code" was written by AI. A recent internal memo that was made public also noted how certain departments at Microsoft have now made AI usage mandatory, and tied it to the performance reviews of employees.
According to Microsoft, these technologies are intended to “empower employees to spend more time focusing on meaningful work.”
The announcement comes unusually early in Microsoft’s fiscal year, which typically sees structural changes at its close. The timing and scale of the layoffs reflect broader industry trends as tech companies continue to streamline operations while accelerating investments in AI.
