Microsoft Layoffs: 3% of Workforce to Be Cut

Microsoft Announces Workforce Reduction

According to reports from CNBC, Microsoft is preparing to reduce its global workforce by approximately 3%. With a total of 228,000 employees as of June, this adjustment could impact over 6,500 individuals.

Scale of the Reductions

Should the 3% reduction proceed as planned, it would represent one of the most substantial staff reductions undertaken by Microsoft since the elimination of 10,000 positions in 2023.

The company maintains that these changes are essential for adapting to the evolving demands of the current market. A Microsoft representative communicated this to TechCrunch.

Financial Performance and Layoff Rationale

Despite reporting strong financial results for the previous quarter – $70.1 billion in revenue, a 13% increase, and $25.8 billion in net income, an 18% rise – Microsoft is proceeding with these layoffs.

These cuts are anticipated to affect employees across all levels, geographical locations, and teams within the organization. A spokesperson clarified to CNBC that this round differs from previous reductions.

Earlier this year, in January, Microsoft implemented layoffs that were specifically attributed to performance considerations. However, the current restructuring is not linked to individual performance evaluations.

Industry Trend of Tech Layoffs

The tech industry has experienced a significant wave of workforce reductions over the past year. Amazon and Meta also initiated layoffs in January, demonstrating a broader trend.

This pattern suggests a recalibration within the technology sector, as companies adjust to changing economic conditions and strategic priorities.

Microsoft’s global workforce currently stands at approximately 228,000 employees.
The planned reduction represents roughly 3% of the total workforce.
Financial results for the previous quarter were positive, with revenue up 13% and net income up 18%.
The current layoffs are distinct from performance-based reductions implemented in January.